The low sales of passenger vehicles in India for the past many months has seen many manufacturers lose out on their market share, including Maruti Suzuki.
The Indian automobile industry has been seeing low sales for quite a long time now. Poor customer sentiments and a crisis of liquidity have affected vehicles across all segments. Passenger vehicles recorded a decline of 18.42% in between April to June, 2019 from what was sold last year. There are deeper implications to this condition as Maruti Suzuki is even losing out on their market share in India.
Maruti Suzuki, India’s largest automobile manufacturer, has recorded a decline in their market share. Maruti Suzuki’s market share as of Q1 in FY 2019 stands at 50.99% as compared to 52.54% in Q1 FY 2018. That’s a loss of 1.55% of the market share. Numerically, the decline in sales was of 95,550 units or down by 20.82%, for the period from April 2019 to June 2019.
On the other hand, Hyundai, which is the second largest automobile manufacturer in the country has seen an increase in their market share by 2.06%. It seems the losses of Maruti have been taken over by Hyundai. Even Hyundai has recorded a decline in sales by 7.73% or 10,600 units in Q1 of 2019 when compared to Q1 of 2018. However, the decline was not as severe as that of Maruti Suzuki and the launch of the Venue has helped Hyundai to catch up on market, increasing their share from 15.70% to 17.75%.
Similarly, Mahindra too has recorded an increase in their market share with the newly found success from the XUV300 and the Marazzo. Mahindra is third on the list of highest market shares of the automobile industry in India. Moreover, they have just witnessed a decline of 1.88% in sales from Q1 in 2018 to 2019. They were also the only manufacturer to report positive growth for the month of June. Mahindra’s market share in Q1 2018 stood at 6.93% and now in Q1 of 2019, its 8.34% – thus recording an increase of 1.4%.
The only other manufacturers joining Hyundai and Mahindra with an increase in market share are Toyota and Renault, recording an increment of 0.12% and 0.09% respectively. All other car makers – Ford, Volkswagen, Nissan Datsun, Skoda, Fiat Jeep, Isuzu, Force Motors – have either been losing their market share because of poor sales or have been struggling to hold on to their position.