M&M is slowly losing the UV race
Mahindra’s Market Share in Utility Vehicles used to be as high as 55% (FY2011-12); but in FY 2019-20, it has more than halved to 19%. M&M has lost over 5% Market Share in the UV segment in the last FY itself – The UV Market Share dropped from 23.8% in FY 2018-19 to 18.7% in FY 2019-20. The bigger matter of concern here is that the OEM has lost Market Share even after the launch of products like Marazzo, XUV300 & Alturas in the past 1-2 years timeframe. So what happened in these years that Mahindra is losing the game that it mastered?
M&M understood the Indian landscape well and its products like Bolero & Scorpio are still sought after in rural markets. It did create a stir in the urban cities with XUV500 and there was a time (in year 2011) where Mahindra had to stop bookings for the XUV500 where it garnered 8,000 bookings in just 5 cities where it was initially launched (Mumbai, Delhi, Bangalore, Chennai & Pune). But over the years; Mahindra lost the sheen with XUV500 and it had missed the bus in rolling out a sub-4m Compact SUV on time. We don’t count the launch of Quanto / Nuvosport as it was never an indigenous product from Mahindra’s stable – rather was a shortened Xylo of sorts. Even the XUV300 which came in 2019; was based on the Tivoli platform but the length was compromised to fit in sub-4m range – And; was priced comparatively higher to peers as well. The previous 3 launches from Mahindra’s – Marazzo, XUV300 & Alturas was launched with the intent to gain an ‘incremental’ volumes of 8,000 to 9,000 units per month; but are not able to bring even half of those numbers currently.
The likes of Maruti & Hyundai learnt from the mistakes of M&M and carefully drafted launches in the segment with much more market research and consumer study. Do note how even Hyundai joined the party late with Venue and launched it in May 21, 2019 – But; it ticked all the boxes customer wanted in the segment and Venue also emerged as the 2nd Best Selling SUV for FY20! (link).
Maruti retained the Top Spot as India’s largest Utility Vehicle maker in FY 2019-20. The launch of XL6 in the previous fiscal bolstered Maruti’s position as the No.1 UV maker. However; it lost -3.5% Market Share in FY20 v/s FY19.
Hyundai gained big in UVs with the launched of Venue. Hyundai’s UV Market Share shot up from 13.7% in FY19 to 18.8% in FY20. Hyundai even pipped Mahindra to emerge as India’s second biggest UV maker.
Mahindra lost the highest market share in UV segment and now slipped to Rank 3. FY21 shall be even more crucial as a lot of new UVs are planned to be launched from other OEMs.
Kia emerged as the dark horse and overtook the likes of Toyota in UV Market Share in the first year of operation itself! It now holds an envious market share of 9.1% in UVs. Also both the launches from Kia were in UV segment itself (Seltos, Carnival).
Toyota’s market share loss was the second-highest in FY20 (after Mahindra). The Japanese major lost -3.7% Market Share in UVs in FY20 v/s FY19.