Is Tata Motors on track to beat Hyundai and become Rank 2 soon?
Tata Motors has increased its market share this Financial year till date by 3.41% ( the highest by any OEM). As of October ending, the Market Share stands at 11.08%. Whereas Hyundai dropped Market share by 1.09% and reached 16.99% YTD.
Tata Motors has been on an aggressive front with its PV business. One launch after another followed by one network expansion after another. To this, the increase in customers' acceptance for Tata Motors products, has helped propel the growth story of Tata Motors to new heights.
The impact of this growth is being felt by all OEMs, especially Maruti & Hyundai have experienced a fall in their YTD market shares. Tata Motors continues to inch closer to the rank 2 position with every passing month.
Hyundai's volumes for LY April to October period stood at about 2,19,130 units. Against this Tata Motors, registered a volume of 92,966 units. The gap Last year between the two OEMs was about 1,26,164 units.
This financial year, the gap is reduced to 97,272 units. And TATA Motors has moved up the volume game and managed to touch 1,82,243 units as against Hyundai's 2,79,515 units.
We can clearly see from the table above, from the month of July the volume GAP between the two OEMs when compared to the last year's gap continues to reduce on a monthly basis.
The difference in market share continues to drop month on month basis from the month of May itself. We can see a clear drop in the difference from the above table. The gap in market share between Hyundai and Tata was down to as low as 1.19% in the month of October 2021.
Tata Motors seems to tighten the gap for the Rank 2 position and has managed to reduce the lead of Hyundai by 28,892 units for the period April to October 2021 when compared to April to October 2020. If we look at September the gap was reduced to 4 digits and October specifically saw the gap between the two reduced to 3,095 units.
One would argue that the chip shortage could be the reason for Hyundai's lower volume, but the chip shortage is a global phenomenon and affects all OEMs around the world, but Tata Motors seems to get its act together, in a better fashion, than any other OEM in India.
It remains interesting to see, how Hyundai fights back to retain and strengthen its rank 2 position. Especially with the SUV segment being the Indian Passenger Vehicle Industry's growth driver and Hyundai being the leader in this segment.