India is the only country in the world where the top three auto
manufacturers increased their market share to 70% for April-December
2015 compared to 67% in 2012
Also, the share of the top 10 models in the total sales has remained more than 50% for the last three years. The only change in the pecking order has been Mahindra & Mahindra moving into the third slot in 2013-14, ousting Tata Motors.
This overwhelming dominance of a few players in a market, which has 18 car and SUV manufacturers, is something peculiar to India alone. R S Kalsi, ED (marketing & sales), Maruti Suzuki India, said, "There is no other example of this trend anywhere else in the world and the highest marketshare by a single company, apart from Maruti in India, is Toyota in Japan with around 30%."
Indeed, the top two's dominance of the market becomes obvious when one considers that their incremental volumes are more than what some of their competitors sell in a year. Rakesh Srivastava, senior VP (sales and marketing), Hyundai Motor India, said, "Last year, our sales went up 16% to 4.76 lakh units in the domestic market and this incremental increase is higher than the annual sales volume of 10 auto companies in India."
But part of it also has to do with the existing car pool and the Indian customer's comfort level with a product/brand that has strong resale value.
Also, the share of the top 10 models in the total sales has remained more than 50% for the last three years. The only change in the pecking order has been Mahindra & Mahindra moving into the third slot in 2013-14, ousting Tata Motors.
This overwhelming dominance of a few players in a market, which has 18 car and SUV manufacturers, is something peculiar to India alone. R S Kalsi, ED (marketing & sales), Maruti Suzuki India, said, "There is no other example of this trend anywhere else in the world and the highest marketshare by a single company, apart from Maruti in India, is Toyota in Japan with around 30%."
Indeed, the top two's dominance of the market becomes obvious when one considers that their incremental volumes are more than what some of their competitors sell in a year. Rakesh Srivastava, senior VP (sales and marketing), Hyundai Motor India, said, "Last year, our sales went up 16% to 4.76 lakh units in the domestic market and this incremental increase is higher than the annual sales volume of 10 auto companies in India."
Part of this is due to the early mover advantage and the ability to
focus on a solid distribution channel. Maruti Suzuki, for instance, has
1,750 showrooms and 3,000 workshops, while No. 2 player Hyundai has
1,070 showrooms, 370 used car outlets and 335 rural sales outlets.
But part of it also has to do with the existing car pool and the Indian customer's comfort level with a product/brand that has strong resale value.
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