In MHCV trucks, the share of >25 tonne has increased 930 bps y-o-y to 49.7% YTD, implying that tonnage growth remains higher than volume growth.
YTD share at 34.3%, up 230 bps y-o-y. The share gain has been driven by market share gain in the >35 tonne segment partially offset by 100 bps y-o-y share loss at 37.2% in buses. The weakness in bus market share is in line with the management’s commentary of selectively bidding for STU orders as many of such orders are not profitable. In MHCV trucks, the share of >25 tonne has increased 930 bps y-o-y to 49.7% YTD, implying that tonnage growth remains higher than volume growth. In LCVs, with revival in the sub 2 tonne segment (15% y-o-y growth YTD FY18) the share of this segment has remained stable at 32% y-o-y. However, the segment share has tapered sharply from the FY13 levels of 52%, predominantly due to over-capacity coupled with stringent lending norms for single fleet owners. M&M remains the leader in LCVs (with 40% market share) followed by Tata Motors at 38%. However, we believe, Tata Motors could regain its leadership going into an expected revival in the mini-truck segment (where Tata Motors is the market leader with its Ace brand).
Maruti’s overall PV share has crossed 50% (+400 bps y-o-y) in YTD FY18 driven by the success of its newly launched models. In cars, Maruti’s market share has increased 490 bps y-o-y to 56.7% YTD (despite production constraints) backed by the success of the Baleno and Dzire. Hyundai’s car market share is at its lowest in 5 years at 19.1% (down 120 bps y-o-y) owing to weakness in small cars (Eon) and sedan (Verna) sales. However, it more than makes up for it in UVs (13% market share) with the Creta averaging a staggering 10k per month.In UVs, Maruti is now the largest player with its market share up 540 bps YTD at 29% (driven by the Brezza). M&M’s market share is down 360 bps YTD at 25%. M&M’s market share peaked at 55% in FY12, post which Ford, Maruti, Hyundai and Renault have gained share with the launch of compact SUVs. In scooters, Honda’s market share remains steady. Hero has lost 260 bps market share YTD (at 12%), which has been gained by TVS Motors. Hero’s scooter market share can recover (peak was 20%) with the launch of the refreshed and BS-4 compliant Duet and Maestro Edge last quarter.