Is it the dominance of SUVs that is helping Indian car companies? Both Tata and Mahindra were always known for their rugged vehicles.
BHPian CrAzY dRiVeR Recently shared this with other enthusiasts.
Happy Independence Day!
On this happy occasion – calling out a trend seen in sales threads.
We are buying more cars from domestic manufacturers (TATA & Mahindra) than ever before, and at ever higher prices! In fact – a sharp trend has been observed post-Covid and currently stands at 22% of the market share.
We had higher market shares more than a decade ago, mainly contributed by entry-level cars from TATA and Mahindra (Indica and Bolero), but the recent trend has been driven by far more upmarket products.
Combined sales of TATA and Mahindra in last decade:
- Significant increase in sales after Covid. In fact, Tata Motors had more dispatches than Hyundai in the last two months and is giving Hyundai a good run for second place in market share.
- Nexon continues its blockbuster run. Although 5 years old in the market – it has outsold updated rivals from Maruti Suzuki and Hyundai in recent months.
- Punch has become another blockbuster for TATA – selling over 1 lakh units in just 10 months of launch.
- Not just about small cars – TATA has also overcome its old image factor – selling 4k – 5k units of 20L+ Omega platform (Harrier + Safari) in recent months.
- TATA Nexon EV is the best selling electric car in India. Shares garage space with many premium households who would never have considered a TATA car before!
- Mahindra is limited only by its manufacturing capabilities. Their booking backlog is close to 1.5L booking till July 2022!
- The XUV 7OO has been a huge success with dispatches crossing 6k units every month, and the order backlog still brimming with over 80000 bookings.
- Thar is now close to 20L on-road and selling better than ever with ~3500 units per month and a backlog of 26000 bookings. For what is supposed to be a niche product – it is selling better than many mainstream products for this price!
- ScorpioN’s bookings have also gone into six figures – and the classic is back in rural markets.
- Less reliance on the Bolero – though it still brings good rural numbers for Mahindra. Innova Diesel’s rumored closure flop could work in Marazzo’s favour.
Has the Covid lockdown changed our shopping preferences? Hopefully, this is a long-term trend and Tata Motors continues a close race to overtake Hyundai in second place.
Is it the dominance of SUVs that is helping domestic manufacturers? Both TATA and Mahindra were always known for their rugged vehicles.
Or is it just that Indian companies are finally bringing their A-game? Products like XUV 7OO, Harrier, Nexon (ICE and EV), Scorpio N, etc. have really held their ground against foreign brands.
what is here GTO On this matter had to say:
With the onslaught of new competition, Tata & Mahindra would have faced an existential crisis. Many MNCs have entered (and exited) the Indian car market in the last 10 – 15 years. It is important to consider that MNCs manufacture cars for multiple countries, so they can play with large R&D budgets.
If Tata & Mahindra don’t keep their “A game”, they will be wiped out. Satisfaction will take them on the same path as Premier Auto and Hindustan Motors. As a wise man once said, there is no problem in the auto industry that a good car can’t solve. And Mahindra/Tata have not just one but atleast 5-6 good cars. They’re playing a great game, putting out great cars and – as an added bonus – topping the safety charts. Thanks to versatile products, they are also able to command premium prices. 10 to 12 years ago, who would have imagined a successful car from Mahindra or Tata for Rs 25 lakh? Now, they have waiting lists.
Awesome and incredibly proud. Happy Independence Day everyone!
what is here BHPian RavenAvi On this matter had to say:
The time comes, the man comes!
Over the years, competition has become fiercer with newer, more sophisticated products regularly introduced in the Indian market making the current Tata & Mahindra lineup look outdated. But look what he did. This added to the strong commitment of both our domestic auto manufacturers. They went back to their drawing boards, developed new concepts and plans for their future and brought out brand new, contemporary products that started their transformation. Both Mahindra & Mahindra and Tata Motors deserve a big pat on the back for this.
The Indian car buyer has consciously evolved and changed their preferences. Safety has become paramount in car buying criteria in recent years and Tata Motors started the movement with its excellent 5 star offerings, Mahindra quickly followed suit. And with that, the company’s modern-day launches saw the addition of cutting-edge technology and this began to reflect in its sales numbers. It’s been a remarkable turnaround for both Indian auto manufacturers – more so because they’ve started fresh and revamped their entire lineup to bring new, better, all-rounder products to every segment of the car-buying public. . Never-before-seen mass-market features are now offered in affordable segments that are sure to drive sales numbers. Now, Indian car manufacturers are no longer playing catch-up. In fact, the competition is now desperately trying to get something serious!
May they continue to grow and prosper. Other companies are now sitting up and burning their midnight oil, which in turn will help them come up with better products in the future. God bless the competition!
Happy Independence Day, Team BHP!
what is here BHPian pqr On this matter had to say:
Happy Independence Day!
Tata Motors and Mahindra together held the highest market share (23%) in 2005 and 2006. The principle is simple and same for all. Get ‘product’ and ‘price’ (2P of the 4P marketing model) right, and market share will grow. The opposite is also true.
Even one product (Nissan Magnite) can do wonders with a wafer-thin dealership network (‘place’ – of the 4P marketing model). And sometimes an entire product portfolio (Sunny, Micra and Terrano) can’t.
what is here BH Pian Somin d On this matter had to say:
Kudos to TATA and Mahindra for putting their heart into creating great products. With the kind of reputation they had earned (eg TATA’s taxi image) this would not be an easy task. Admirably, they didn’t try to copy the market leaders like Ford tried with the new generation Figo/Aspire (trying to copy the Swift/Dzire), but went ahead and improved their safety standards. Created USP.
Here is a good case study on TATA motor conversion.
Global players are leaving us one by one, it’s TATA and Mahindra I look forward to as my next upgrade as their products in the 20-25L range are actually desirable (as well as VFM). Who would have thought this 5-10 years ago?
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