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UV market in 2020: Maruti Suzuki maintains lead, but Hyundai is fast catching up

G Balachandar Chennai | Updated on January 17, 2021

While Maruti’s market share slips, the South Korean major makes inroads with new Creta

In the intensely competitive UV (utility vehicle) segment, market leader Maruti Suzuki managed to maintain its lead in 2020 despite loss of market share, while Hyundai, the second biggest player, achieved significant gains.

During the pandemic-battered year, the total UV sales (SUVs, MUVs and MPVs) stood at 897,406 units when compared with 984,928 units in 2019, a decline of 9 per cent, while all other vehicle categories reported significant double-digit decline. A strong demand for SUVs helped the segment weather the storm.

Maruti’s total UV sales for 2020 stood at about 203,124 units (254,157 units), while Hyundai’s total UV sales grew to 180,237 units (171,441 units).

So, Maruti’s market share stood at 22.63 per cent in 2020, down from 25.8 per cent. On the other hand, Hyundai’s market share grew to 20.08 per cent from 17.41 per cent in 2019.

Meeting customer need

“In recent years, the company has strategically widened its UV portfolio, matching customer demands. In 2020, we sold 86,717 units of Vitara Brezza; 12,222 units of S-Cross and 104,185 units of Ertiga and XL6. The UV segment is growing fast and we bring out products that match and complement customer’s demand,” said Shashank Srivastava, Executive Director (Marketing & Sales), Maruti Suzuki India:

Hyundai’s quick ramp-up in production in the post-lockdown period helped it deliver the new Creta , which had huge bookings when the lockdown was imposed. The company emerged as the top player in the SUV segment. In 2020, Hyundai was the only player to report positive growth in UVs (on a full year basis), while all other established players (excluding Kia and MG motors) reported a decline. “We became number one brand in SUV segment in 2020 and Creta continues to be the top brand of choice in SUV segment,” said SS Kim, Managing Director HMIL. New entrant Kia Motors managed to secure the third position in the UV market with a 15.6 per cent share, which is marginally higher than Mahindra & Mahindra that saw an erosion in its share to 15.18 per cent in 2020 (22.19 per cent).

Tata Motors’ share was 7.03 per cent and Toyota’s 5.7 per cent.

Suraj Ghosh, Principal Analyst — South Asia Powertrain Forecasts, IHS Markit points out that SUV body style has been the most sought-after among buyers. Though it's not a new trend, it has gained prominence as more products have become available under leading brands. And this trend is expected to continue in 2021 as well — sustained consumer preference and more OEMs getting into this segment will be the drivers.

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Published on January 17, 2021
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