Tata Motors continues to grow its market share in the commercial vehicle (UV) market. The company, which has taken the lead in Q1 FY2023 (April-June 2022) with wholesale sales of 97,943 UV, retains its No. 1 position ahead of Maruti Suzuki India and Mahindra & Mahindra. In just four months, the company has risen to the top spot – in FY22 Tata Motors was the third largest UV OEM with sales of 226,151 units and a UV market share of 15.19 %.
With total deliveries of 118,449 units in the first four months of fiscal 2023, Tata Engines recorded solid year-on-year growth of 157% (April-July 2021: 46,077) and also significantly increased its UV market share to 18.70% from 10.84% a year ago. Achieving this goal in a fiercely competitive market environment is clearly commendable and speaks to the growing demand for the company’s SUVs – the Nexon, Nexon EV, Punch, Harrier and Safari.
The high-end Harrier and Safari SUVs, however, seem to have been somewhat impacted by the introduction of the Mahindra XUV700, a product that has become superior in terms of overall attributes and technology.
Where the company has an edge over its competitors is in its electric vehicles, particularly the Nexon EV – India’s best-selling electric passenger vehicle, which has no real competition as of yet. It’s up to September 8, when Mahindra will launch its all-electric XUV400.
Leader in the passenger vehicle market Maruti-Suzuki currently ranks second with 104,124 UVs shipped in April-July 2022 (up 13% YoY), 14,325 units behind Tata Motors and only 850 units ahead of player #3, Mahindra & Mahindra.
Like some other OEMs, Maruti Suzuki has seen its production significantly affected over the past year by the chip supply chain crisis, but is expected to rebound soon with the market rollout of its new Brezza and Grand Mid-size Vitara, with deliveries expected to begin around the holiday season. Nevertheless, the figures reveal that the company has lost a good share of the UV market – currently at 16.47%, compared to 21.71% it had in April-July 2021. The company is said to have an order book of 387,000 units .
Major utility vehicle Mahindra and Mahindra is in third position and on the heels of Maruti with 103,274 units, up 63% year-on-year. The company, which has an estimated backlog of 273,000 units, saw its UV market share rise to 16.34% from 14.91% a year ago. In FY 2022, M&M had a 15% share (223,682 units) in India’s UV market. With a flurry of new models like the recently launched Scorpio, Classic Scorpio and the huge demand for the XUV700 and Thar, M&M will seek to increase production at its factories.
Hyundai Motor India, like Maruti Suzuki, has lost UV market share – from 18.81% a year ago to 15.64% currently. The Chennai-based OEM shipped 98,859 units in April-July 2022, up 24% year-on-year. The Creta continues to be its mainstay with 50,039 units and accounts for 50.61% of total UV sales. The Venue comes next with 39,013 units, followed by the Alcazar (9,243). The Tucson and Kona EV provided 564 units in total from April through July.
Hyundai’s Korean Brother KIA ranks fifth with 83,783 units, up 46% year-on-year, giving it a market share of 13.25%, down slightly from 13.45% a year ago. The Seltos, its first product for India, remains its best seller with 21,847 units in April-July 2022, followed by the Sonet compact SUV with 20,758 units.
Toyota Kirloskar engine has put up a solid show over the past four months. With 51,040 units, it recorded 112% year-on-year growth and increased its UV market share to 8.07% from 5.66% a year ago. The popular Innova Crysta minivan with 22,783 units remains its bestseller and accounted for 44% of sales, followed by the Urban Cruiser with 18,677 units and 37%. The butch Fortuner and the luxurious Vellfire MPV contributed the remaining 9,580 units in total.
Skoda Auto India with his Kushaq and Volkswagen India with the Taigun are the other UV players who have benefited from the launches of new models. Skoda with 9,648 units (Kushaq: 9,266 units) increased its market share to 1.52% from 0.42% a year ago while Volkswagen India, with 7,000 units, now holds a share of 1, 1% against 0.14% a year ago.
The best-selling SUVs in April-July
Here are the top 10 selling UVs in the first four months of fiscal 2023, which account for 63% of total UV sales (601,662 units). The Tata Nexon leads the charts with 56,594 units or 9.4% of total industry sales. It’s the only model here that has an EV variant, giving it a sizeable edge in a market that’s experiencing a gradual shift to e-mobility.
The Hyundai Creta, with 50,039 units, overtook the April-June No. 2 model, the Maruti Ertiga, which now sits in third place with 47,232 units. The Punch, the youngest member of Tata’s ‘New Forever’ range, is on track and recorded its best monthly sales of 11,007 units in July, and thus passed the 100,000 units wholesale mark in to barely 10 months.
OEMs await holiday season fees
SUVs are a growth story that can only get better day by day. Of the 15 OEMs in the running, only three show declining sales figures in the April-July 2022 period. A close look at wholesale data amply shows that India’s growing UV demand is a matter of democratization .
With one in two cars sold in India being commercial vehicles, there is room for all as what is on offer ticks the right boxes. While the top six UV manufacturers account for 88.5% of the market, a fierce battle is underway for the other 11.5% UV market share.
Given the large UV backlog of Maruti Suzuki, Mahindra and Hyundai, the marked improvement in semiconductor supplies should allow OEMs to quickly ramp up production to ensure they get the most out of the festive season which begins later this month.
July sales see builders firing on all cylinders
Tata Motors increases UV market share to 19%
Tata Motors, which was the third largest UV supplier in 2022 with a 15% share, took the top spot with 18.70% in a market full of new products and fierce competition.