Maruti grabs additional 5% share in passenger cars to 63% in FY-20, holds on to 51% share in PVs

MUMBAI: Maruti Suzuki, which changed India’s personal transport landscape three decades ago, continued to hold on to its 51% share of the home market in FY20 despite its decision to junk diesel-powered vehicles in the run-up to the industry’s transition to strict emission norms.

The lack of a diesel portfolio in Q4 and the star-studded entries by Kia and MG were seen as potent threats to the market share for the maker of Swift and Dzire, but Maruti Suzuki harnessed its well-planned BS-VI transition to outrun competition.

Having registered over a 25% decline in the first half of FY20, Maruti Suzuki got into a gradual recovery mode through the festive season, ending the year at 18% negative, in line with the market decline of 18%. Maruti Suzuki sold 1.41 million units in a market of 2.77 million in FY-20.

The introduction of S-Presso and the new Ertiga played a big role in helping the company stem the decline in a very difficult market.

Experts say the ability to read the market and react to the changing environment offers Maruti Suzuki the edge. Plus, the company has retained its BS VI pricing advantage in petrol. Maruti Suzuki’s BS VI vehicle prices went up by an average of Rs 10,000 to Rs 15,000, compared with Rs 25,000 to Rs 40,000 at competition.

To be sure, Maruti Suzuki was ahead of the market in completing the transition to BS VI emission norms. Of the 1 million BS VI vehicles sold so far, Maruti has already sold more than 8 lakh such vehicles. And even in petrol vehicles, it had a high share of 60%.

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Gaurav Vangaal, associate director, IHS Markit says, Maruti continues to strengthen its core – i.e. compact cars – and is building on its utility vehicle presence in the mainstream market.

“With new entrants it was expected that Maruti Suzuki will lose share. However, with meticulous planning of the BS IV transition, it has managed to hold on to its own. The pressure on market share will remain intense for Maruti in the coming years. But with unprecedented disruptions like corona, buyers will end up downgrading, which would aid Maruti more than others,” added Vangaal.

In the passenger car segment, Maruti Suzuki now enjoys 63% share, considered among the highest in the world in large passenger vehicle markets. Maruti gained more than a 500-basis-point share in the car segment.

In the utility vehicle space, the company saw its share slip a bit, to about 25% from 28% share it enjoyed last year, thanks to new challengers like Kia Seltos, Hyundai Venue and Mahindra XUV300. Yet, it remained a leader in the utility vehicle segment by a distance. Hyundai was trailing Maruti by a significant 5% share in the utility vehicles.

Kenichi Ayukawa, MD of Maruti Suzuki, in a recent interview with ET had said the company would be able to hold on to 50% market share despite new entrants.


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