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India's passenger vehicle (PV) market is witnessing a significant shift, as long-standing players like Maruti Suzuki and Hyundai experience a decline in their market share, while new entrants gain traction.
A recent report by Jefferies reveals that the combined market share of Maruti Suzuki and Hyundai has fallen to a 12-year low in the first half of fiscal year 2025 (1HFY25). This marks a notable change in the competitive landscape, as consumer preferences evolve and new competitors make headway.
The report states, "Market shares of the top 2 OEMs (Maruti and Hyundai) slipping to 12-year lows in 1HFY25 and Mahindra and Toyota climbing to all-time highs." Both Maruti and Hyundai have been dominant players in India's PV sector for years, but they are now facing increasing competition from other manufacturers, particularly Mahindra & Mahindra (M&M) and Toyota.
According to the report, Mahindra's market share has reached a historic high of 12.5 per cent in 1HFY25, fuelled by the growing demand for SUVs, a segment in which Mahindra has consistently introduced new models. Tata Motors, too, has made significant progress, with its market share peaking at 14 per cent in FY23, though it has slightly decreased to 13.3 per cent in the first half of FY25.
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Despite this, the second quarter proved challenging for the PV industry in India, with wholesale volumes, including exports, registering a 1 per cent year-on-year decline. This suggests that while consumer demand for newer, feature-rich vehicles such as SUVs continues to rise, there are still headwinds for the overall sector.
As per the latest sales data from the Society of Indian Automobile Manufacturers (SIAM), passenger car sales in October saw a decline of 17 per cent. However, when considering all passenger vehicles, including buses and autos, total sales in October reached a record high of 393,238 units, marking a 0.9 per cent increase from the previous year.
The market dynamics indicate that while Maruti Suzuki and Hyundai's dominance is waning, the growing popularity of SUVs and the success of brands like Mahindra and Tata Motors suggest a rapidly changing landscape in India's passenger vehicle market, as per ANI.
(With inputs from ANI)
