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New models help Hyundai, M&M drive up market share in FY20

In a market that declined by about 24% between April and August, Hyundai and Mahindra's volumes slipped just 10%.

, ET Bureau|
Updated: Sep 16, 2019, 06.42 AM IST
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Hyundai
SUVs are helping both Hyundai and Mahindra expand volume share. Venue has brought in incremental sales of about 35,000 units for Hyundai.
New model launches through a broader slowdown have helped India’s no. 2 and 3 passenger vehicle makers — Hyundai and Mahindra & Mahindra — increase market share in FY20, with leader Maruti Suzuki now controlling about half the industry’s sales volumes.

In a market that declined by about 24% between April and August, Hyundai and Mahindra's volumes slipped just 10%. The maker of Santro witnessed a 270-basis point increase in market share, whereas Mahindra has seen its share increase by 120 basis points.

By contrast, Maruti’s share declined 234 basis points, the steepest on the leader-board. Volumes dropped faster than the market at 27%, with share reducing to a tad below 50%.

To be sure, six of the top ten car makers have lost share, with new players M G and Kia already garnering 1% of the market so far this fiscal year between them. Renault and Toyota are other two vehicle makers registering a marginal market share increase. Both brands were helped by new models – Triber and Glanza - this year.

SUVs are helping both Hyundai and Mahindra expand volume share. Venue has brought in incremental sales of about 35,000 units for Hyundai.

Vikas Jain, national sales head for Hyundai Motor India, said three new launches in three different segments have helped increase customer traction, footfalls in showrooms and market share.

“A positive mindset in customers is clearly visible… as they are confident with Hyundai assurance of sales and service even in a weak demand environment,” Jain said.
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Mahindra also saw product action at different price points, bringing in new buyers, even as it struggled to hold on to volumes of its workhorses Scorpio, Bolero and XUV 500. At Hyundai, the launch of Venue also cannibalised its bestselling SUV Creta, even as its sister company Kia’s Seltos may have lured away a few prospective Hyundai buyers.

At Mahindra, the XUV 300, Marazzo and Alturas brought in incremental sales of about 27,000 units this fiscal year. Veejay Nakra, chief of sales and marketing, Mahindra & Mahindra, said XUV300, Alturas G4 and Marazzo have helped the company perform better than the industry average in a challenging environment. “Our new products are complemented by various customerfacing initiatives. We have also put a lot of emphasis on sales efficiency through artificial intelligence – both at pre-purchase or post-purchase stages,” Nakra said.

Maruti’s declining volume share coincides with its decision to phase out diesel vehicles gradually, and it has also begun introducing the pricier BS-VI vehicles about nine months ahead of the deadline. Tata Motors was the second biggest loser in market share after Maruti as new product action eased at the maker of Hexa and Tigor.
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