Think of compact cars, and you know the leading player in the segment. However, when it comes to mid-size sedans, figuring out the market leader isn?t that simple. Indeed, the answer is simple: nobody. Whether it is Honda Siel Car India, which has the popular City model or Maruti Suzuki India Ltd with its SX4 and Dzire or Hyundai Motor India Ltd with its Accent and Verna range, competition for the number one slot in this segment is growing tougher by the day.

An in-depth analysis of the segment suggests that new models and the availability of products across different price ranges in different fuel options has helped carmakers alter the very dynamics of a segment that has registered growth of 14.61% in 2007-08 at 2,25,719 units, compared with 1,96,942 units in 2006-07.

According to the Society of India Automobile Manufacturers, Maruti Suzuki emerged the leader in the segment in 2007-08 with a marketshare of 21.85%, a far cry from the fourth position that it held in 2006-07 with a marketshare of 15.08%. The company sold 49,335 units in 2007-08, compared with 29,697 units in 2006-07, an impressive growth of 66.13%.

This pushed the once undisputed market leader Honda to the second slot with a marketshare of 17.95% in last fiscal, vis-?-vis 20.55% in 2006-07. With no product addition to the category during the last financial year, the company posted flat growth of 0.14% at 40,521 units, compared with 40,464 units in 2006-07.

?Growth in any segment and for any player is largely driven by new products, as old products tend to take a back seat. While Maruti introduced two models in the segment in 2007-08?the SX4 and the Swift Dzire?Honda continued with the City and this helped Maruti increase its marketshare,? says Abdul Majeed, an auto analyst and partner with PricewaterhouseCoopers.

Jnaneswar Sen, senior general manager (marketing), Honda Siel Car India, grudgingly agrees. ?Obviously, a larger number of models in a particular segment helps players garner a bigger marketshare,? he says.

For Hyundai, the Accent and Verna helped the company maintain its marketshare at 14.53% in 2007-08, compared with 14.71% in 2006-07. But a 13.15% jump in sales at 32,791 units, compared with 28,980 units in 2006-07 enabled the company to emerge as the third-largest player in the segment, ahead of Tata Motors.

?The availability of the Verna in both petrol and diesel versions helped us cover a wide spectrum of prospective buyers, some of whom were looking for budget buys and others who want performance along with the economy of diesel,? says Arvind Saxena, senior vice-president, Hyundai Motor India Ltd.

Tata Motors, which was in third place in 2006-07 with a marketshare of 17.42%, has since slipped fourth position with a marketshare of 13.92% in 2007-08 after the company witnessed a dip of 8.45% in sales at 31,416 units in the last fiscal, compared with 34,317 units in the preceding fiscal.

According to Majeed, manufacturers who have products in different price categories end up attracting more buyers than those with single-product strategies. ?Products priced at both the lower end and the top end of the segment by any manufacturer give customers more choice to graduate from one segment to another, retaining their OEMs,? he says, citing the example of Maruti?s Dzire and the Hyundai Accent at the lower end and the Maruti SX4 and Hyundai Verna at the top-end of the segment.

Such a strategy proves worthwhile, given the burgeoning replacement market. According to a report by Emkay Research, there is a potential pool of 5 million compact car users who are expected to upgrade to a higher segment in the near future.

?There has been a jump in per capita income in the last few years and, consequently, affordability has also gone up. Moreover, with changing lifestyles people are rapidly graduating from A and B segment cars (compacts like the Maruti 800) to bigger cars that help them make a statement,? says an industry expert.

Ford India Pvt Ltd, which is present in the mid-size sedan category with the Ikon, Fusion and Fiesta, has been the biggest loser. Ford was the second-largest player and Honda?s closest rival with a marketshare of 20.22% in 2006-07, but it slid to fifth position with a marketshare of 12.87% after a dip of 27.01% in sales at 29,061 units, compared with 39,820 units in 2006-07.

?Despite the fact the Ford has offerings across different price ranges within the mid-size sedan segment, no product innovation from the Ford stable has brought down its marketshare,? says an industry expert.

On the other hand, Mahindra Renault Pvt Ltd, which made its debut in the segment in 2007 with the Logan, has emerged the biggest gainer. In sixth place with a marketshare of 11.47% in just one year of operations, it is rapidly nipping at Ford?s heels, with cumulative sales of 25,891 units of the Logan in the last fiscal, thanks to its availability in both petrol and diesel versions.

?Diesel variants certainly help as they widen the choice offered to potential customers,? says Saxena of HMIL, adding that Hyundai is eyeing a marketshare of around 20% in this segment by the end of 2008. Given the growing competitiveness in the segment, clearly, carmakers need to keep their eye as much on the rear-view mirror as on the road ahead.