New entrants grab part of MUL's market share

By Our Special Correspondent

NEW DELHI, MAY 24. New entrants have started eroding the market share of Maruti Udyog Ltd. even as the passenger car industry entered a difficult phase in April, according to the latest figures from the Society of Indian Automobile Manufacturers (SIAM) released here today.

MUL's market share fell to 56.3 per cent in April from 76.4 per cent in the same month last year whereas its competitors handsomely increased their market share. Hyundai raised its share to 13.60 per cent from 8.3 per cent, Telco to nearly 10 per cent from 4.1 per cent and Daewoo to 9.4 per cent from 2.3 per cent.

``This is an impressive gain for other car companies, especially Hyundai which does not have a range similar to Maruti's,'' said an industry analyst. Some other auto majors however saw lower sales. These included Mercedes Benz, Hindustan Motors and Fiat.

On the other hand, all categories of commercial vehicles, except the multiutility segment, witnessed increased sales at 8,658 in April as compared to a year ago. Sales of medium and heavy commercial vehicles rose by four per cent while light commercial vehicle sales have gone up by 20.9 per cent. However, sales of Ashok Leyland have dipped by about 20 per cent in April whereas Telco more than make up the short fall. The new entrant Volvo India did not supply the sales and production figures to SIAM.

In the light commercial vehicles segment, Telco maintained its supremacy though with a reduced 55 per cent share of the total shares in April against 64 per cent in the same month last year. Mahindra & Mahindra sold 617 LCVs while Bajaj Tempo, Eicher and Swaraj Mazda managed to sell just over 300 vehicles each.

In the two-wheeler category, the decline in sales of scooters continued unabated. Total sales in April by the five scooter companies were 94,547 units against 96,367 in April 1999 and over one lakh vehicles two years ago. While Bajaj and TVS-Suzuki managed to sell more scooters, LML and Maharashtra Scooters saw their sales dipping.

Motorcycle sales witnessed an encouraging growth at 1.65 lakh units against 1.27 lakh units. Hero Honda maintained its lead, selling more than double the sales of its closest rivals Bajaj Auto and TVS Suzuki. Escorts Yamaha saw a drop in sales while Royal Enfield's sales were 2,131 vehicles. The sixth manufacturer in this category, LML, sold just four units.

Mopeds too showed an increase in sales by nearly 10 per cent. TVS Suzuki remained the undisputed challenger, selling more than the other four companies combined. While Kinetic and Bajaj Auto sold more mopeds, there was a reversal in the fortunes of Majestic Auto.

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How they fared

MUL market share slips at the expense of Hyundai, Telco and Daewoo.

Commercial vehicle segment witnessed increased sales.

Scooter sales still under pressure.

Encouraging growth in motorcycles and mopeds.

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Section  : Business
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