Amid utility vehicle (UV) sales boom with more than a million units for the first time in FY21, Maruti managed to maintain its top position despite market share loss, while Hyundai, Kia, Tata Motors and Renault grew their market share with positive growth in volumes during the fiscal.
The UV segment (includes sports utility vehicles (SUVs), multi-utility vehicles (MUVs) and multi-purpose vehicles (MPVs)) bucked the automotive market trend in FY21 with 12 per cent growth at 10,60,750 units compared with 9,45,959 units in FY20. The growth was primarily driven by increasing buyers’ shift towards SUVs and several new launches in the segment.
Industry representatives point out that growth in the segment could have been little higher had the semi-conductor-related disruption in production not happened in the recent months.
Market leader Maruti Suzuki India’s total UV sales declined by about three per cent at 229,101 units in FY21 compared to 235,298 units 2019-20, while second top player Hyundai’s total UV volumes grew 21 per cent at 214,167 units (176,774 units).
Maruti’s market share dropped to 21.59 per cent (24.87 per cent). Hyundai’s market share grew 20.19 per cent from 18.79 per cent in FY20. A strong order book for its new Creta 2020 and Hyundai’s quick production ramp up in the post lock-down phase helped grow the volumes.
New entrant Kia
New entrant Kia Motors managed to secure third position in the UV market with marginally higher volumes at 1,55,686 units than Mahindra & Mahindra’s sales of 1,55,530 units. Kia’s market share increased to 14.68 per cent from 8.97 per cent in FY20, while Mahindra’s share declined to 14.66 per cent from 18.96 per cent in FY20.
Tata Motors has also been exhibiting a strong progress, helped by new launches and the company’s UV sales grew 46 per cent at 86,447 units, garnering a market share of 8.15 per cent in FY21.
French car maker Renault continues to maintain its momentum in the UV market and its volumes grew 20 per cent at 51,434 units and it secured a share of 4.85 per cent. The company bets on its compact SUV Kiger to drive volumes along with existing product Triber.
Amid semi-conductor issues, the UV market is expected to maintain its sales momentum as more launches are being lined up.