Leading automaker Tata Motors is now the top player in the utility vehicle (UV) space after displacing incumbent Maruti Suzuki. Also, in the overall PV segment, Tata is inching towards achieving the No.2 position after Maruti.  

In the first quarter of this fiscal, Tata Motors’ total UV sales (including compact SUVs, mid-range SUVs and others) stood at 87,943 units (up from 31,303 units in Q1 of the previous fiscal). However, Maruti Suzuki, which has been planning a slew of new SUV launches to retain its position, sold lower at 80,852 units during the April-June 2022 period (60,011 units in Q1 of FY22).   

In the June quarter, Mahindra occupied the number three position with volumes of 74,420 units, while Hyundai’s total UV sales were at 71,123 units, according to data provided by the Society of Indian Automobile Manufacturers.  

From a modest player in the SUV segment, Tata Motors upped the game and achieved a leadership position in a short period. The company’s ‘resurrection in the UV’ market in the past couple of years has been impressive as its new launches and the explosive growth in the SUV market helped the company garner significant volumes.  

Its resurrection journey started with its flagship product Nexon, the first Global NCAP 5-star rated SUV in India, which is now among the largest selling SUVs in the country. In FY22, which proved to be a year of product offensive for the brand, the company introduced Harrier and Safari together with advanced vehicle architecture and new features. Both the SUVs garnered a market share of 35.8 per cent in the high SUV segment in FY22. The launch of Punch, which came with a Global NCAP 5-star rating for adult safety, in FY22, accelerated the sales momentum with the new entry-level SUV clocking average monthly volumes of 10,000 units.  

Wide range

Industry analysts point out that Tata’s offer the widest range of products consisting of sub-compact SUV (Punch), compact SUVs (Nexon, Nexon EV) and Midsize SUVs (Harrier and the New Safari) to address all price points along with impressive design language coupled with higher safety features have played a key role in sales surge in the SUV segment.  

SUVs accounted for a modest 26 per cent of total passenger vehicle sales in FY18, since then this has been ever-increasing with its share touching 61 per cent in FY22. Average monthly sales of SUVs increased from about 10,000 vehicles in Q1 FY22 to about 28,000 vehicles in Q4 FY22, according to data provided by Tata Motors.  

Tata Motors’ new variant launches, including CNG models, in the car segment also strengthened its position further. As a result, the company’s overall PV (passenger vehicle) volumes moved northwards. In Q1 of this fiscal, its total PV volumes stood at 131,940 units (up from 64,961 units in Q1 of FY22). The second-largest player Hyundai’s total PV volumes stood at 135,295 units (up from 114,499 units).   

Thus, Tata has reduced the sales gap with Hyundai drastically and going forward the competition between the two for the second position is set to intensify as Hyundai has also been upping its ante with new launches.  

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