MSIL had been sustaining a market share of about 50% within the Indian passenger car area for a very long time and saved the crown of 51% till FY20. So, why did MSIL lose the sport?
The onset of a brand new decade, in a real sense, threw a very unseen and unprecedented world for all of us. The Indian passenger car trade went via disruptions too. On the centre of it have been provide chain crises and volatility in probably the most a part of the enterprise.
It’s noteworthy that this was succeeded by Indian auto inc braving the impolite shock of demonetisation and slowing the financial system. Withstanding this, the passenger car makers crawled to their peak in FY18-19 with a complete quantity of three.37 million models. Even then MSIL saved an unshaken 51% market share.
High Passenger Car Makers Home Gross sales Pattern Since Final Peak of FY 2018-19
Sooner or later demand feebled, uncertainties gripped the trade, and ultimately general gross sales got here down. The passenger car trade crashed to 2.7 million models in FY20 and within the lately concluded fiscal it wiggled as much as 3.05 million models.
Like most of its counterparts, MSIL additionally couldn’t escape unscathed. Different components that resulted out there chief shedding probably the most are provide chain disruptions, uneven demand curve, and entry of latest gamers like Kia India and MG Motor India. Tata Motors additionally took away the biggest share of the pie. The homegrown automaker doubled its market share to over 12% in FY2022 in comparison with 6.8% in FY 2018-19.
Components like rising demand for utility automobiles (UVs) has additionally performed a key consider bringing down Maruti Suzuki’s market share. UVs’ share within the whole passenger automobiles gross sales in FY2022 (April-Feb) stood at 45.5%. Although the crown bearer of the Indian automobile market is catching up quick within the UV phase, there may be nonetheless good floor to cowl.
“Exit from diesel and rising demand for SUV contributed to the drop in market share”
“This yr now we have seen provide facet constraints as effectively so it might be deceptive to reach at demand facet conclusions in what is actually a provide constrained market. Some producers are clearly affected greater than the others relying on suppliers of semiconductor parts or the car specs or the exports share within the general volumes or the bottom volumes of the OEM . The true demand share sample will emerge when the provides turn out to be regular,“ Shashank Srivastava, Senior Govt Director — advertising & gross sales, MSIL argued.
He additional identified that Maruti Suzuki exited the diesel area which continues to be about 20% of the market. “The truth is one third of the competitors gross sales are in Diesel . We have now made up for this loss considerably by elevated CNG gross sales which is now 9% of the trade ,“ Srivastava added.
Nation’s second largest automobile maker Hyundai Motor India maintained its place however slipped closest to the closest contender for the quantity 2 slot- Tata Motors.
Hyundai’s market share in FY2022 stood at 15.78% whereas Tata Motors inched as much as its highest market share since 2008-9 to 12.1%. Sibling Kia India additionally appeared to have gained.
The sister concern of the Korean automobile main Kia India on the again of huge demand for SUVs secured 6.12% of the passenger car market share to turn out to be India’s fifth largest carmaker. Attaining over 5% market share has remained a distant dream for a lot of international leaders like Volkswagen, Toyota, Nissan, Renault FCA, regardless of being in India for over a decade.
India’s high carmakers and their market share FY2022
Hyundai Motor India additionally had a equally stellar debut within the Indian market. It began operations in 1998 and achieved over 10% market share by 2000.
What lifted Tata Motors’ market share is especially enchancment of its merchandise by way of high quality, design and presence in the proper segments. The house grown carmaker has a variety of latest SUVs beginning with the compact phase Punch, Nexon, to mid phase SUVs Safari and Harrier. Exceptionally effectively designed Tata Altroz has additionally carried out decently in the previous couple of months.
Japanese carmaker Honda Vehicles India skilled the most important loss, a drop from being the fifth largest carmaker within the nation, to eighth place. One other Japanese auto main, Toyota Kirloskar Motor, didn’t achieve or lose market share within the final monetary yr. Its share has remained roughly the identical 4 the previous 4 years regardless of inclusion of Suzuki’s re-badged merchandise like Glanza and City Cruiser.