Comments
Repeated success with SUV and new car launches has helped Indian heavyweights, Tata Motors and Mahindra & Mahindra, seize market share from their rivals including Maruti Suzuki whose control on the domestic market has slipped to its worst level in eight years.
As per sales data for FY22 shared by the Society of Indian Automobile Manufacturers (SIAM), the combined market share of the two Indian automotive brands stood at nearly 20 percent, which is the best in nine years. Last year, nearly one in every five passenger vehicles (PV) sold in India was made by either of the two Indian brands. .
The gain by Tata and Mahindra led to a marked erosion in share of foreign automotive brands. The combined market share of the top two car and SUV makers, Maruti Suzuki and Hyundai, was at its worst level since FY14. Car market leader Maruti Suzuki saw its single biggest fall in market share in a decade last year, while Hyundai’s market share in FY22 was almost at the same level as FY14.
Semiconductor woes
Both Maruti Suzuki and Hyundai have been hit severely by the semiconductor shortage to the extent that both companies had to cut output and undertake unscheduled production holidays. The two brands control 60 percent of the domestic PV market, with Maruti Suzuki closing last year with a share of 43.38 percent (47.71 percent) and Hyundai with 15.68 percent (17.39 percent)
These top four auto companies control nearly 80 percent of the country’s PV market while the balance share is split between 13 companies. India’s PV segment, which comprises cars, utility vehicles (consisting of SUVs) and vans, saw sales of 3.06 million units last year, placing it among the top five auto markets in the world.
Rise of Tata
Tata Motors saw the steepest rise ever in its market share in a single year last year. The Mumbai-based company closed FY22 with a share of 12.15 percent as against 8.26 percent clocked in FY21. The growth was due to Nexon, Punch, Tiago and Altroz.
In an interview to BusinessLine, Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicle and Tata Passenger Electric Mobility said, FY22 sales would have been higher if there were adequate supplies of semiconductors.
“Today the volumes are limited not due to capacity but because of semiconductor shortage. Despite ramping up Nexon’s production to 13,000 a month (from 5,000 a month) there is still a waiting period of 3-4 months on it. We can increase our capacity by another 20-25 percent through debottlenecking,” Chandra added.
A year’s wait for Thar
Powered by new models Thar and XUV700, Mahindra & Mahindra (M&M) was able to not only upgrade existing buyers but draw customers from rival brands as well. The Thar continues to be the most popular product in the company’s portfolio with the waiting period stretching to nearly a year. M&M’s market share for FY22 stood at 7.35 percent as against 5.79 percent recorded in FY21.
Saurav Kumar, Managing Director, Protiviti Member Firm for India, said,“Tata (Motors) has gained significant market share by bringing new models like Harrier, Nexon, Punch and renewed Safari that leverage the platform, design and technology of JLR (Jaguar Land Rover). Mahindra found its sweet spot with the Bolero, Scorpio with the latest being the Thar and XUV700.”
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.