Mahindra & Mahindra (M&M) has gained a 9% market share to stand close to 60% in the utility vehicle (UV) segment during the financial year ended March 31, 2010, on the back of strong demand.

The company has sold 2,14,128 units in the period under review, up 39%, against 1,53,655 units during the same period last year. The UV sales include Scorpios, Xylos, Boleros and Pick-Ups models.

M&M senior vice-president (sales & customer care) Arun Malhotra said, “Demand has been very strong for all our UV models. We have a good number of orders pending as the demand has surpassed the supply.” The shift to the Bharat Stage-IV vehicle emission norms would not slow down the demand for the vehicles despite a price increase expected in few days, he added. He did not quantify the possible price increase.

In the short-term, M&M expects the growth momentum to continue as the growth enablers?economic growth and financing?remain in place, he said.

In March, M&M sold 20,914 of Scorpios, Xylos, Boleros and Pick-Ups against 19,973 units in March 2009. M&M is expected to launch its global new sports utility vehicle (SUV) by this year-end. Of the models, Xylo has been a run away success for the company, say auto analysts.

However, this is contrary to Tata Motors, which saw its UV sales decline by 15% during the year. This is despite the launch of the new Sumo Grande MK II in December 2009 .

The Sumo and Safari range for April-March 2010 stood at 33,531 units compared to 39,303 in the same period last year. For March 2010 alone, Sumo and Safari range sales slipped by 23% to 3,896 units. Of late, the company has been loosing market share of last heard figure being around 18%. The company blames the drop in UV sales in March on the back of supplier constraints.

However, experts believe that the company’s absence from the segment with new launches, not talking about face-lifts, has pulled down the demand for the company’s UVs. Tata Aria, a multi-utility vehicle, is expected to be launched by mid of this year.

Maruti Suzuki sold 3,932 units of Gypsy and Grand Vitara during the year; General Motors sold 8,628 units of Captiva and Tavera and Honda Siel Cars India sold 474 units of CR-V, among others. Toyota Kirloskar saw its new offering Fortuner turn its fortune with sales of 1,095 units in March alone. The company’s sales of Innova, Fortuner and LC 200 for April-February 2010, stood at 25,034 units, according to SIAM report.

According to SIAM report, UV domestic segment has seen a growth of 23% in April-February 2010. The segment is expected to close at 27% for FY’10.