The Race to become the No.3 OEM in India!

The jugglery of the No.3 OEM spot in 2020 has been quite amazing and 3 OEMs are claiming the position – Tata Motors, Kia & Mahindra. But; which OEM can seal a permanent spot there?

  • Maruti has been India’s largest automaker for a very long time and commands a market share of almost 50%. It has been the consistent No.1 OEM and has actually increased its stronghold over the years.
  • Hyundai has been trying to follow Maruti’s footsteps and has a model in almost every segment Maruti is present. However; it has not been able to break Maruti’s dominance in the hatchbacks segment and settles at No.2 spot. It has held to this position for over a decade now and is currently invincible in the same.
  • The combined Market Share of Maruti+Hyundai is a humongous 68% in the Indian market!
  • Mahindra had been the Third biggest OEM in the calendar year 2019 (source) and was ahead of the No.4 Tata Motors by quite a big margin (66,719 units).
  • However; things changed during the BS6 transition and the incessant lockdowns due to Covid 19. The No.3 OEM jugglery over the past 8 months is as shown –

  • The No.3 OEM monthwise has been highlighted in yellow in the above table. Do note that Mahindra was the No.3 OEM in January & May 2020. However; Kia Motors India took the spot in Feb’20 & Mar’20. Also since June’20 – Tata Motors has consistently held the position as India’s third biggest automaker.
  • In CY2020; as of now Tata is the clear No.3. But with the Sonet launch in Sep’20; Kia has a strong chance of bouncing back to No.3.
  • Similar to Maruti (No.1) & Hyundai (No.2); will we ever have a stable No.3? Only time shall tell. Also do we require a stable No.1 & No.2 too? In a consumer centric market/economy – having a tough competition is always preferable.

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