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The market share conundrum

M. Ramesh

CHENNAI, April 22

LAST year (1999-2000), Ashok Leyland's market share in `passenger vehicles' segment increased to 45.2 per cent from 44.5 per cent in the year before. Its share of the `goods' market improved to 30.6 per cent (30.4 per cent).

While the company's share increased in both the segments of the commercial vehicles market, its overall market share declined to 34 per cent (34.5 per cent). How is this possible ?

The company's Executive Director (Marketing), Mr. Amol Sandil, explained that the answer to this conundrum lay in the passenger-goods mix of the overall commercial vehicles market.

Last year, between Telco and Ashok Leyland, 1,03,911 commercial vehicles were sold in the country. Ashok Leyland sold 35,350 vehicles, while Telco did 68,561, giving the former a 34 per cent share. In the previous year, 78,690 vehicles had been sold, 27, 109 by Ashok Leyland (34.5 per cent) and 51,581 by Telco.

However, last year, the proportion of passenger goods in the total industry volume of commercial vehicles fell to 23.5 per cent from 28.6 per cent previously.

In 1998-99 (according to the figures provided by the Society of Indian Automobile Manufacturers), 22,494 passenger vehicles were sold. Ashok Leyland sold 10,020 buses, while Telco sold 12,474. Hence Ashok Leyland ended up with a market share of 44.5 per cent.

Last year, 24,469 buses were sold in the country _ 11,062 by Ashok Leyland and 13,407 by Telco. This gives Leyland 45.2 per cent share.

Similarly, of the 56,196 goods transport vehicles sold in 1998-99, 17,089 (30.4 per cent) were sold by Ashok Leyland and the rest by Telco. Last year, the total industry volume of good vehicles increased to 79,442, of which 24,288 (30.6 per cent) were s old by Leyland.

Since Ashok Leyland gained more in a falling (passenger) segment, its overall market share declined marginally, even as its intra-segment market shares in both the segments improved.