The combined share of the two Indian players has grown from 14 per cent in FY19, to a quarter of the industry’s volumes in the June 2023 quarter.
Also, both the Indian players together have the highest number of top-safety rated (5-star or 4-star ratings by Global NCAP) passenger vehicles in their portfolios, when compared to their global counterparts in the Indian market.
During the first quarter of this fiscal, the PV industry sold 4.13 lakh units of cars (against 4.12 lakh units in the year-ago period) and 5.47 lakh units of UVs (including SUVs, MPVs, and MUVs), when compared with 4.65 lakh units.
Of the 9.6 lakh PVs sold in the April-June 2023 period, Tata Motors and Mahindra & Mahindra together accounted for 2.4 lakh units, garnering a 25 per cent share in overall PV volumes, up from 23.5 per cent in the year-ago period. Also, Mahindra & Mahindra and Tata Motors now occupy the second and third position, after Maruti Suzuki, in the UV segment.
Japanese companies -- Maruti Suzuki, Toyota Kirloskar, and Honda Cars India -- together sold about 4.5 lakh units during Q1 of this fiscal, garnering about 47 per cent share in total PV volumes. South Korean automakers Hyundai and its group brand Kia together sold about 2.1 lakh units, securing about 22 per cent share.
Tata Motors makes strides
Tata Motors’ resurrection in the UV market has been noteworthy. In a short period, the company has grown its presence and volumes in the UV market, supported by a new product line-up and a shift in consumer preferences from cars to SUVs. The company now offers a range of vehicles – sub-compact SUVs (Punch), compact SUVs (Nexon and Nexon EV), and mid-size SUVs (Harrier and Safari) – to address different price points.
With its flagship products, Nexon and Punch, Tata now dominates the intensely competitive sub-4 metre compact UV segment. It’s the segment leader with about 27 per cent share.
Similarly, with a host of new SUV launches, Mahindra & Mahindra has upped its ante in the UV market and has grabbed the Number Two position in the segment during Q1 of this fiscal, up from the third position a year ago. The company is the number one SUV manufacturer by revenue market share. As of May 1, 2023, M&M carried an order book of 2.92 lakh units for its SUVs, including 78,000 units of the XUV 700 and 1,17,000 units of the Scorpio-N respectively.
“M&M’s reorientation of its SUV business to maintain its DNA and brand positioning has led to a revival in its fortunes and robust demand for its SUVs. This has led to a strong order backlog as production lags demand, which offers continued volume traction over the next 12-15 months, according to a recent report byMotilal Oswal Financial Services Ltd.