Mahindra & Mahindra (M&M), the largest utility vehicle (UV) maker in India, will see its market share in the overall UV space come down to 28% by calendar year 2018 from the 51% at the end of calendar year 2013, industry researcher IHS Automotive forecasts. M&M, which presently sits on top of the UV space with its Scorpio and Bolero models, is seeing increased competitive intensities in the UV1 (compact UV) space, where it currently has a weak presence.
“Monopoly days are over now, M&M’s share in the UV segment is set to go down from 51% at the end of CY13 to 28% by CY18,” said Puneet Gupta, associate director, IHS Automotive.
“The number of newer models in this segment will rapidly increase and consumers, who did not have too many options earlier, will now have multiple brands and products to choose from. Although M&M will not lose on volumes, it will fare badly in terms of domestic market share. M&M can retain market share only if it plans for refined products, especially in the UV1 segment. And this is possible if it has a more collaborative approach with Ssangyong,” Gupta added.
As per IHS Automotive, the UV segment is expected to grow 84% in volumes from 6,14,493 vehicles in CY13 to 11,29,767 vehicles in CY18. M&M’s current market share in the segment is 51% at 3,10,568 vehicles, and is expected to grow to 3,16,334 vehicles by 2018.
In the UV1 space, M&M will be seeing stiff competition from at least six top carmakers including, Maruti Suzuki, Ford, Tata Motors and Honda, which have plans to launch multi-utility, sports and compact vehicle offerings in the sub-R10 lakh bracket.
Meanwhile, M&M has been working hard to to compete with rivals in the UV1 space with the launch of two new SUV platforms by CY15. Codenamed S 101, the vehicles are expected to be priced in the R5-9 lakh price bracket and will come with 1.2 and 1.6-litre petrol and diesel variants.
“As a market leader in the UV space, M&M should have read the trend and stayed ahead of the competition. The company needs to come up with new top-of-the-class products,” said Dharmesh Shah, auto analyst at SBICap Securities.
“Two factors will play out in the sector where UV1 will continue to outpace the other segments. M&M will lose market share in the short-term because it does not have a strong presence in the UV1