With customer preference shifting towards compact sports utility vehicles, auto firms are losing market share in cars.
With customer preference shifting towards compact sports utility vehicles, auto firms are losing market share in cars. For instance, during April-January of the current fiscal, the country’s second largest car manufacturer Hyundai Motor’s market share in passenger cars was at a five-year low at 19.7%, reports Malyaban Ghosh in New Delhi. Even Maruti Suzuki’s market share in passenger cars declined 43 basis points to 52.3%.
Hyundai’s market share hitting a five-year low in cars is due to a fall in the sales of its smaller offering Eon and sedan Verna. It maintained its sales momentum in the hatchback segment, an Axis Capital report said. However, if the utility vehicle sales of Hyundai is taken into account, then its overall market share in what is called the passenger vehicle segment has remained stable at 17.5%.
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This is because the bulk of sales at Hyundai for the last more than a year has been driven by its SUV Creta.
If the market share of utility vehicles is seen, that of Maruti’s during April-January increased to 26.6% against 15.3% in the same period last year and that of Hyundai jumped to 12.63% against 10.3% in the same period last year.
Maruti’s sales has also largely been driven by SUVs like Ertiga and Brezza, apart from the premium hatchback Baleno. The increased market share of these two players in the UV segment has pulled down the market share of Mahindra and Mahindra to 29.9% against 37.2% in the same period last year.