January 2011

Overview Of The Indian Car Market In 2010

Evolution of market shares between major car manufacturers in India:
2009 - 2010 comparison based on sales volumes Vo l k s w a g e n accomplishes one of the best year-on-year progression in terms 1 % of market shares

0 % 1 % 1 % 1 % 3 % 3 % 12 %

Newcomers have added fierce competition for hardto-gain market shares

1 % 1 % 2 % 3 % 3 % 40 % 12 %

38 %

14 %


13 %

25 %
Maruti Suzuki Tata Motors Hyundai Motor India Ltd. Mahindra & Mahindra Honda Toyota Ford Fiat India Skoda Volkswagen

26 %
Maruti Suzuki Tata Motors Hyundai Motor India Ltd. Mahindra & Mahindra Ford Toyota Honda Fiat India Skoda Volkswagen

Overall distribution is stable, with Tata Motors showing a satisfactory yearly progression while Maruti Suzuki and Hyundai Motor India Ltd. show a relative loss of market shares imputable to aggressive competition from market entrants.

Distribution of sales volume between major car manufacturers in India:
Growth in sales has been profitable to almost all actors, with the notable exception of Fiat, largely missing its yearly goal. Limited market shares are still refraining new entrants from fully profiting from overall sales volume inflation, leaving largest carmakers take the lion’s share.

2009 - 2010
3000000 2250000 1500000 750000 0 Volkswagen Skoda Fiat India Honda Toyota Ford Mahindra & Mahindra Hyundai Motor India Ltd. Tata Motors Maruti Suzuki 2009 2010 IndiaTransPortportal.com

January 2011

Overview Of The Indian Car Market In 2010

Monthly car sales breakdown of four largest manufacturers:
2009 - 2010 comparison based on monthly sales volumes










0 January 09

April 09

July 09

October 09

0 January 10

April 10

July 10

October 10

Tata Motors

Hyundai Motor India Ltd.

Mahindra & Mahindra

Maruti Suzuki

While overall positions and market shares haven’t changed significantly between the four largest manufacturers on the Indian market, a monthly breakdown reveals interesting shifts in strategies and some missed opportunities. Although monthly sales have been relatively stables for back runners Hyundai Motor India Ltd. and Mahindra & Mahindra, 2009 and 2010 have seen a fierce battle for dominance between Tata Motors and Maruti Suzuki. Outstanding monthly performances by Tata Motors on the period January 2009 - January 2010 seemed two hint too a potential monthly outselling of Maruti Suzuki. But the potential spur expected from the Nano failed to come through and Tata Motors closed the year 2010 on an underperformance; leaving room Maruti Suzuki plenty of room to seize new sales during the summer 2010.

Difficult start for the Tata Nano:
Indian automobile firm Tata Motors hit a rough patch from mid-2010 on with its new Nano. The preceding year, the company had selected 1,55 lakh customers to be the first recipients of the car but these failed to take immediate delivery of the car when it was announced to be ready. By December 2010 it appeared that Tata Motors had only managed to deliver 77,000 cars, including second lot and open sales buyers, since July 2009. Failure to launch could be explained by poor records of road safety and incidents which have smeared the car’s reputation. In response the company offered free upgrades and extended warranties but consumers remained cautious.

January 2011

Overview Of The Indian Car Market In 2010

Promising growth on the luxury car market:
Fast-paced growth in the luxury car segment spurs competition between carmakers An old feud is being revived between the two german heavyweight BMW and Mercedes Benz in India. While Mercedes has been present for a few years on the Indian market, BMW’s arrival in 2007 spurred new competition. Mercedes displayed a remarkable response capacity, putting forward intimidating sales number and a best ever second quarter with 799 sales between April and June 2010. However, in 2010, it seemed as if BMW would eventually outgrow its arch Nemesis, touting record sales in the month of October 2010 and impressive overall growth that allowed the company to close the sales gap with rivaling firm Mercedes.

60% 388 753

annual growth rate of the luxury car segment in India

units sold in June 2010, Mercedes’ best month

units sold in October 2010, BMW’s best ever month

The Indian market appears to be slowdown-proof


25% 30%

overall growth rate of the domestic car market in India on the period 2009 - 2010 and above expected growth rate of the domestic car market in India for the period 2010 - 2011




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