Leading automaker Tata Motors has managed to retain its leadership position in the domestic utility vehicle (UV) space despite intense competition in the segment.
In the first quarter of this fiscal, Tata Motors displaced Maruti Suzuki to become the No.1 player in the UV segment, supported by strong volume growth of its new SUVs.
With strong pent demand and a slew of new launches, the UV segment witnessed heightened action and players like Mahindra boosted the presence with a significant increase in volumes amid production constraints due to chip shortage issues. Leading players like Maruti and Hyundai also introduced new products to regain their presence and market share.
But, with robust demand for its SUVs such as Nexon and Punch and growing response to other products such as Harrier and Safari, Tata Motors’ sales exhibited a strong upward curve in the September quarter.
According to data, Tata Motors sold 181,481 units in the UV segment during the first half of this fiscal. The company sold 87,943 units in Q1 of this fiscal and 93,538 units in the September quarter. Over the past two quarters, SUVs have been making up about two-thirds of the company’s total PV sales. In Q1, SUVs accounted for 68 per cent of PV volumes.
“Led by record-setting sales of Nexon and Punch, SUV sales contributed a rich 66 per cent of the quarterly (September) PV sales. Going forward, we expect the festive season will witness strong retail on the back of an improving supply of vehicles,” said Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd.
Recently, the company celebrated the production milestone of 4 lakh units for its 5-star safety-rated Nexon, launched in September 2017. Also, its another 5-star rated compact SUV Punch achieved the production milestone of one lakh units last month. Punch became the first SUV to achieve this record in a span of 10 months, since its launch in October 2021.
With an impressive new SUV product line-up, Mahindra’s sales have been zooming in recent months. Last month, it clocked the highest ever monthly SUV sales of 34,262 units. As a result, the company secured No.2 position in the segment by pushing Maruti to the third position. Mahindra’s total UV volumes, including SUVs, stood at 167,052 units in H1 of this fiscal, while Maruti’s total volumes were at 163,630 units. Hyundai has occupied the Number 4 position, followed by Kia.
The competition in the UV space is set to intensify further in the coming months. Most of the players are sitting on a huge backlog of orders and with some easing of chip issues, the companies are expected to ramp up production to meet the delivery schedules. The waiting period for vehicles has been reduced. However, it remains high for certain models such as the newly launched Scorpio N, XUV700, and Ertiga CNG.