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Why MarutiSuzuki is losing market share to Tata Motors

The automobile industry is changing.

And the No 1 player Maruti has seen its market share dip to less than 45%. Because it was slow to see and respond to this change.

What's changing?

SUVs now account for 39% of the Indian car market in 2021.

This has tripled in the last 5 years.

Share of Utility vehicles is up to 48% in 2021.

Up from just 15% in 2002.

Tata Motors is the biggest gainer in this space.

Kia Motors plans to offer only SUVs in India.

Why is this happening?

The analysts say it is because of bad roads, SUVs are better because of higher ground clearance.

They can also seat more people.

But roads have always been bad.

In fact they are getting better in some parts of India. New highways Nagpur - Mumbai and UP for one.

So what explains this trend?

Is it because the car manufacturers itself have more SUV models - 68 in 2020 compared to 42 in 2013.

How does a market change?

EV adoption is increasing day by day.

The government is playing an active role in driving that change.

EVs are also bursting into flames at an alarming rate. That's causing doubts in a few people already.

Are you an SUV owner yet?

Have you switched to electric?

How about your next car being an electric SUV?

And some are talking hydrogen also.

Exciting times in auto.

Stressful times for some auto industry folks. Not for all.

Talent for EV is in shortage so salaries are going through the roof.

How do you think the market will evolve?

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