Is SUV dominance helping Indian automakers? Tata and Mahindra have always been known for their rugged vehicles.
BHPian CRAZY DRIVER recently shared this with other enthusiasts.
Happy Independence Day!
On this joyous occasion – evoking a trend noticed in sales leads.
We are buying more cars from domestic manufacturers (TATA and Mahindra) than ever before, and at significantly higher prices than ever! In fact, there is a strong post-Covid trend and currently sits at around 22% market share.
We had higher market shares more than ten years ago, mainly thanks to entry-level cars from TATA and Mahindra (Indica and Bolero), but the recent trend is driven by much higher-end products.
Combined sales of TATA and Mahindra over the past decade:
- Significant increase in post-Covid turnover. In fact, Tata Motors has had more shipments than Hyundai in two of the past months and is giving Hyundai a good run for second place in market share.
- Nexon continues its run for success. Despite being 5 years on the market, it has outsold updated rivals from Maruti Suzuki and Hyundai in recent months.
- Punch became another blockbuster for TATA – selling 1 lakh units in just 10 months of launch.
- Not just on small cars – TATA has also overcome its old image factor – selling 4k – 5k units of the 20L + Omega platform (Harrier + Safari) in recent months.
- TATA Nexon EV is the best-selling electric car in India. Shares the garage space in many high-end homes who never would have considered a TATA car before!
- Mahindra is only limited by its crafting capabilities. Their reservation book amounts to nearly 1.5 L of reservations in July 2022!
- XUV 7OO is a huge success with shipments exceeding 6,000 units per month and an order book still over 80,000 reservations to fill.
- Thar is now approaching 20 liters on the road and is selling better than ever with around 3,500 units per month and an order book of 26,000 reservations. For what is considered a niche product, it outsells many mainstream products at this price!
- Scorpion bookings have also hit six figures – and the Classic is back for rural markets.
- Less reliance on the Bolero – although it continues to bring good rural numbers for Mahindra. The supposed discontinuation of the Innova diesel could work in favor of the flopped Marazzo.
Have the Covid lockdowns changed our shopping preferences? Hopefully this is a long-term trend and Tata Motors continues to give Hyundai a close race for second place.
Is SUV dominance helping domestic automakers? TATA and Mahindra have always been known for their rugged vehicles.
Or is it just that Indian companies are finally bringing their A-game? Products like the XUV 7OO, Harrier, Nexon (ICE and EV), Scorpio N, etc. have really held their own against established foreign brands.
Here is what GTO had to say about it:
With the onslaught of newer competition, Tata & Mahindra should have faced an existential crisis. Many multinationals have entered (and exited) the Indian automotive market over the past 10-15 years. It is important to consider that multinationals develop cars for several countries and can therefore play with a larger R&D budget.
If Tata & Mahindra didn’t put their “A game” on they would be finished. Complacency would have taken them down the same path as Premier Auto & 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 at least 5-6 good cars each. They play the game hard, produce great cars and, as a bonus, top the safety ratings too. Thanks to comprehensive products, they are also able to obtain high prices. Who would have imagined a successful Mahindra or Tata at 25 rupees 10 to 12 years ago? Now they have waiting lists.
Well done and incredibly proud. Happy Independence Day everyone!
Here is what BHPian RavenAvi had to say about it:
Comes the hour, comes the man!
Over the years, the competition has steadily increased with newer and more sophisticated products being introduced to the Indian market on a regular basis, rendering the existing Tata & Mahindra ranges outdated. But look what it did? This only added to the unwavering determination of our two local automakers. They went back to their drawing boards, rolled out new visions and plans for their future, and released contemporary new products that began their turnaround. For that, Mahindra & Mahindra and Tata Motors deserve huge pats on the back.
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 has kickstarted this movement with its excellent 5-star offerings, with Mahindra quickly following suit. And with that, cutting-edge technology was added to modern launches of either company and it started showing up in its sales numbers. It was a remarkable turnaround for the two Indian automakers, especially as they started fresh and revamped their entire lineups to offer newer, better and more versatile products for every segment of the car-buying public. cars. New features for the mass market are now offered in affordable segments, which says a lot about the sales figures. Now, Indian automakers are no longer catching up. In fact, the competition is now desperately trying to catch up!
May they continue to grow and prosper. Other companies are now sitting back and burning their midnight oils, which will in turn help to make better products out of them in the future. God bless the competition!
Happy Independence Day, Team BHP!
Here is what BHPian pqr had to say about it:
Happy Independence Day!
Tata Motors and Mahindra together achieved the highest market share (23%) in 2005 and 2006. The rule is simple and the same for everyone; get the “product” and “price” (2P out of the 4P marketing model) correctly, and the market share will increase. The reverse is also true.
Even a single product (Nissan Magnite) can work wonders with an ultra-thin dealer network (“place” – from the 4P marketing model). And sometimes an entire product portfolio can’t (Sunny, Micra, and Terrano).
Here is what BHPian SoumenD had to say about it:
Kudos to TATA and Mahindra for putting their hearts into developing great products. With the kind of reputation they had acquired (TATA’s Taxi image for example), this was not going to be an easy task. What’s commendable is that they just didn’t try to copy the market leaders like Ford tried with the next generation Figo/Aspire (trying to copy Swift/Dzire), but instead created their own USP safety standards.
Here is a good case study of TATA Motor’s turnaround.
With global players leaving us one by one, it’s TATA & Mahindra that I look forward to as my next upgrade as their 20-25L range products are actually ambitious (as well as VFM) now. Who would have thought that 5-10 years ago?
Check out BHPian’s comments for more ideas and information.