FULL YEAR ANALYSIS: APRIL 2020 TO APRIL 2021
After a “Zero Month” in April 2020, the Industry seemed to be coming on track and ironically, rocking by the time Oct’2020 and the festive period started.
Was it due to: pent up demand, the shift of entire migrant populations to the rural areas, rural economy and agriculture sustaining demand, the sudden and abnormal growth in personal transport due to exercising caution in Pandemic Times, reduced operational cost, and more disposable income due to work from home for a large part of the Upper Middle Class, no effect on the Higher Income Class, who drove the sales growth of the SUV segment? There could be and many reasons for the growth.
The Auto OEM with Japanese and Korean presence has, somehow, managed to keep their share intact. The Japanese-based OEMs have maintained their combined share of around 55% of the industry: albeit more than 85% of this 55% share is contributed by just 1 player: Maruti Suzuki. Maruti Suzuki has been well served by having popular models in all the 3 segments: hatchback, sedan, and utility vehicles.
The Korean players are Hyundai and its sister company Kia. They are maintaining a combined market share of 23%. Both the companies have been well served by the excellent sales growth of their SUV offering. In fact, Hyundai has effectively dethroned Mahindra from its pedestal of being the market leader in the SUV segment. Kia too is gaining sales volumes consistently through its Seltos. Aggressive launches are planned by both Hyundai and Kia.
The Indian manufacturers, Tata and Mahindra, are having a combined market share of 15%. Tata Motors has been a revelation with all its models, in the hatchback, sedan, and SUV segment emerging as winners. The company is maintaining a market share of around 9% consistently, hindered by manufacturing constraints; and with an increase in production, could make a strong challenge to the No.2 player Hyundai – which has a market share of 15%. Mahindra has lost its premier position in the SUV segment and would be under pressure to not lose more ground. Tata and Motors have shown the gumption for a fight with aggressive launch plans as also strategic decisions on their product portfolio.
The other OEM and their foreign collaboration: Italians/Germans/Czech/US/China, make up the balance numbers; and have still to mount a serious challenge.