In the last few years, the Indian auto sector had gone through some paradigm-shifting changes. First, it was the slowdown in auto sales, followed by the transition from BS4 to BS6 emission norms, and then came COVID-19. These changes have not only had an impact on customer demands but have also affected the standings of India's top automakers. In this regard, India's largest automaker by volume, Maruti Suzuki India's market share has come down to an eight-year low, at 43.65 per cent, in Financial Year 2021-22, with total sales of over 13,31,558 units. The last time the company's market share was this low, was in FY 2013-14 when it fell to 42 per cent.
Tata Motors has reported a rise in market share, which right now stands at 12.14 per cent, at 3,70,372 units, its highest ever in the last thirteen years
What's interesting is that, for the same FY 2022 period, rival Tata Motors has reported a rise in market share, which right now stands at 12.14 per cent, at 3,70,372 units, its highest ever in the last thirteen years. This makes Tata Motors the third-largest carmaker in India, right behind Hyundai, which too saw a drop in market share and now stands at 15.78 per cent for FY 2022, with total sales of 4,81,500 units. While Maruti Suzuki continues to lead the market even today, previously, the carmaker had always maintained a market share of around 50 per cent. In fact, during the pre-COVID fiscal years of FY 2020 and FY 2019, Maruti Suzuki held a market share of 51 per cent and 51.22 per cent, respectively. However, during the peak of COVID, in FY 2021, it fell to 47.72 per cent.
Also Read: Auto Sales March 2022: Maruti Suzuki Reports 2% Rise In YoY Sales, Saw 13% Growth For FY2022
While Maruti Suzuki continues to lead the market even today, previously, the carmaker had always maintained a market share of around 50 per cent
In addition to COVID, one major aspect that has changed, compared to then and now, is the removal of diesel engines from the company's portfolio. Maruti Suzuki stopped producing diesel vehicles in India in April 2020 following the transition to the more stringent BS6 emission norms. And the company claims that this is one of the key reasons for this drop in market share. Diesel vehicles continue to command 20 per cent demand in the market. Speaking with ET Auto, Shashank Srivastava, Senior Executive Director - Marketing & Sales, Maruti Suzuki India said, "One third of the competition sales are diesel. We have made up for this loss somewhat by increased CNG sales which is now 9 per cent of the industry."
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Another aspect that has led to the fall of Maruti's market share is the increasing demand for SUVs. Right now, the only SUV in the company's portfolio is the Vitara Brezza, whereas rivals like Tata Motors, Hyundai, Kia, and Mahindra are commanding the SUV segment with multiple products. However, Maruti is upping its game in the utility vehicle space, and over the next few years, we will be seeing more models from the Indo-Japanese carmaker in this space, which includes the Creta-rivalling compact SUV, which is under development in partnership with Toyota.
Also Read: Auto Sales March 2022: Tata's Passenger Vehicle Sales Grow 43 Per Cent At 42,293 Units,
Mahindra is currently at the fourth spot, follow by Kia India and Toyota in the fifth and sixth positions
As for other manufacturers, Mahindra & Mahindra is currently at the fourth spot with a market share of 7.4 per cent, a 10 per cent growth compared to FY 2020. Kia Motors is in the fifth spot with a market share of 6.12 per cent, while Toyota is right behind with 4.06 per cent in the sixth position. Renault India and Honda Cars India, are in the seventh and eighth spot with market shares of 2.87 per cent and 2.81 per cent, respectively, while Skoda Auto Volkswagen India is in the ninth position with an increased market share of 2.16 per cent. MG Motor India takes the tenth spot with a market share of 1.32 per cent, followed by Nissan in the eleventh position with 1.24 per market share. Other OEMs make up the remained 0.46 per cent market share.
Source: ET Auto
