Why Maruti, Hyundai's market share has dipped to 12-year low
Maruti Suzuki and Hyundai, two of India's biggest car manufacturers, have seen their combined market share plummet in the first half of this fiscal year. According to Jefferies's research, the companies' combined market share has fallen to a 12-year low between April and September. The decline is attributed to emerging competitors making inroads in the Indian passenger vehicle space.
Shift in consumer preferences and market competition
The decline in Maruti and Hyundai's combined market share indicates a change in consumer preferences (plummeting demand for small cars), and competitive dynamics in the Indian car market. Meanwhile, Mahindra and Toyota have witnessed their market shares hit record highs in the same period. This is largely because of the growing popularity of SUVs in India, a segment where both companies are well-placed.
Mahindra and Tata Motors's market share surge
Mahindra's market share in the first half of FY25 hit a record high, with a 12.5% share in the passenger vehicle sector. The increase was mainly driven by the rising demand for SUVs, where Mahindra has a stronghold. Tata Motors also witnessed its market share hitting an 11-year high with a 14% stake in FY23, although it slightly fell to 13.3% in the first half of FY25.
Indian passenger vehicle industry faces challenges
The second quarter of this fiscal year turned out to be difficult for the PV industry, with total wholesale volumes (inclusive of exports) registering a 1% year-on-year decline. This trend indicates that the industry is struggling amid evolving consumer preferences in India. Consumers are increasingly leaning toward newer, feature-rich vehicles like SUVs - a segment where homegrown giants Mahindra and Tata Motors have succeeded.
