How did leading carmakers perform in India in February 2023
What's the story
While Maruti Suzuki and Hyundai have been leaders in small and mid-size car segments in India in recent years, the market shares of the two automotive giants have dipped in February 2023, as per the Federation of Automobile Dealers Associations (FADA). However, SUV specialists Mahindra and Tata Motors along with Kia Motors have seen a substantial rise in demand.
Context
Why does this story matter?
The Indian automotive market has been witnessing rapid changes in recent years. People are choosing offerings with new-age designs, hi-tech features, and better safety ratings rather than only looking for higher fuel-economy figures. This mindset has pushed carmakers such as Mahindra and Tata Motors to the front of the pack, as opposed to the previous leaders Maruti Suzuki and Hyundai.
Decline in sales
Take a look at Maruti Suzuki and Hyundai's sale numbers
Touted as India's largest carmaker, Maruti Suzuki's market share declined marginally to 41.4% in February this year as opposed to 42.36% last year. This was even after a marginal rise in the automakers' sales figures from 1,09,611 units in February 2022 to 1,18,892 units in February 2023. Similarly, Hyundai's market share went down to 13.62% last month as against 14.95% in February 2022.
Rise in demand
Mahindra and Tata Motors see a rise in demand
Mahindra and Tata Motors have witnessed a rise in demand for their SUVs in India in recent months owing to the performance of their offerings in the Global NCAP's crash tests. The former saw its market share rise to 10.22% last month from 7.06% in February 2022, while the latter witnessed a jump in its market share from 13.16% to 13.57% year-on-year.
Other carmakers
Kia Motors, Volkswagen group, and Toyota also witnessed a rise
Kia Motors also saw a jump in its overall market share from 5.27% in February 2022 to 6.81% last month. The South Korean automaker saw year-on-year growth in sales figures from 13,623 units to 19,554 units in February 2023. Apart from Kia, the SKODA Auto Volkswagen group and Toyota Kirloskar Motor also witnessed a marginal increase this year.
Information
SUVs are currently in demand over any other body style
This change could be the result of demand for SUVs in recent years, as opposed to other body styles in India. While Maruti Suzuki and Hyundai primarily cater to the hatchback segment, the SUV category is dominated by Tata Motors, Mahindra, and Kia.