Maruti is set to beat Mahindra as top UV manufacturer in FY18
Maruti Suzuki, the country’s largest passenger car maker, is set to also be the top in utility vehicles (UVs) at the end of the current financial year. Toppling Mahindra and Mahindra (M&M), erstwhile leader in the segment.
For the April 2017 to February 2018 period, the first 11 months of the year, Maruti already had a lead of 21,700 units over M&M, equal to the average monthly volume at the latter. So, it should be ending the financial year (March 31) with a lead over its closest rival.
Riding on the success of the Vitara Brezza (launched in March 2016) and the S Cross, it has been gaining market share in the UV segment — 28 per cent for April-February of FY18, from 14 per cent in 201213.
In contrast, M&M’s XUV 500 got lukewarm response from buyers and its share in the UV market has slipped from 55 per cent around five
years earlier to 25 per cent now. Pawan Goenka, managing director at M&M, had said around the middle of 2017-18:
“We have lost market share primarily because the universe of UVs is expanding very rapidly. And, also because there are many, many more competitors than there were three to four years ago. We are clearly working on getting some of the market share back. We have (also) said it very clearly that to get to that old kind of market share is out of the question.”
Maruti’s strategy to plug the gaps in its product portfolio worked well. R S Kalsi, senior executive director (marketing & sales), said: “We received customer feedback that there is a gap for products with sporty and fun elements in the UV segment. We have introduced products that display dynamic design, glamour and technology to meet the aspirations of customers. Maruti Suzuki has brought disruption in its UV segment.” He added that as a market leader, they were not only expanding the customer base but the entire segment was also witnessing a double-digit percentage growth. Maruti is also set to launch the new Ertiga in the next financial year.
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