The company’s market share in the overall passenger vehicle segment (which includes cars and utility vehicles or UVs) has crossed 50% during the period, which is an increase of 400 basis points.
Buoyed by its new launches like the Baleno and Dzire, Maruti Suzuki’s market share in the car segment has touched a 15-year high of 57% during the April-August period of this fiscal. Compared with the same period last year, the increase in market share is of 500 basis points for the company but it is 700 basis points higher if compared with the ‘pre-competitive’ FY10 era. The company’s market share in the overall passenger vehicle segment (which includes cars and utility vehicles or UVs) has crossed 50% during the period, which is an increase of 400 basis points. With a strong order backlog of four to five months for new models and a healthy launch pipeline, there is high demand visibility for next two years, analysts at Axis Bank have observed.
As is known, Maruti has now also become the largest player in the UV segment displacing the former No. 1, Mahindra & Mahindra. The success in this space is on the back of vehicles like Ertiga and Vitara Brezza. The company’s market share in the UV segment during April-August stood at 29%, which is a gain of 540 basis points. M&M’s share during this period declined by 360 basis points to 25%. M&M commanded a market share of 55% in the segment in FY12. However, with the arrival of compact SUVs from Maruti, Hyundai, Ford and Renault, it gradually started losing market share. If Maruti’s share of the car market has soared to a 15-year high, its closest competitor and the country’s second largest manufacturer, Hyundai Motor during April-August saw its share at its lowest in five years at 19.1%. Compared with the same period last year, the company’s share is down 120 basis points due to weakness in sales of its small car Eon and sedan Verna. However, it more than makes up for it in UVs (13% market share) with the Creta averaging a staggering 10,000 units per month.