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
Newcomers have added the best year-on-year
0 % fierce competition for hard- progression in terms
to-gain market shares
1 % 1 % of market shares
1 % 1 %
1 %
1 % 2 %
3 % 3 %
3 % 3 %
12 %
12 %
40 % 38 %

2009 2010
14 %
13 %

25 % 26 %
Maruti Suzuki
Tata Motors Maruti Suzuki
Hyundai Motor India Ltd. Tata Motors
Mahindra & Mahindra Overall distribution is stable, with Tata Motors showing a Hyundai Motor India Ltd.
Honda Mahindra & Mahindra
Toyota
satisfactory yearly progression while Maruti Suzuki and
Ford
Ford Hyundai Motor India Ltd. show a relative loss of market Toyota
Fiat India shares imputable to aggressive competition from market Honda
Skoda Fiat India
Volkswagen entrants.
Skoda
Volkswagen

Distribution of sales volume between major car manufacturers in India:

Growth in sales has been 2009 - 2010
profitable to almost all actors, 3000000 Volkswagen
with the notable exception of Skoda
Fiat, largely missing its yearly 2250000 Fiat India
goal. Honda
Limited market shares are still Toyota
1500000 Ford
refraining new entrants from
Mahindra & Mahindra
fully profiting from overall
Hyundai Motor India Ltd.
sales volume inflation, leaving 750000
Tata Motors
largest carmakers take the Maruti Suzuki
lion’s share. 0
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
2009 2010
90000 110000

67500 82500

45000 55000

22500 27500

0 0
January 09 April 09 July 09 October 09 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.
IndiaTransportPortal.com
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

60%
An old feud is being revived between the two german annual growth rate of
heavyweight BMW and Mercedes Benz in India.
the luxury car segment
While Mercedes has been present for a few years on
the Indian market, BMW’s arrival in 2007 spurred new
in India
competition.

388
Mercedes displayed a remarkable response capacity,
putting forward intimidating sales number and a best units sold in June 2010,
ever second quarter with 799 sales between April and Mercedes’ best month
June 2010.
However, in 2010, it seemed as if BMW would

753
eventually outgrow its arch Nemesis, touting record
sales in the month of October 2010 and impressive units sold in October 2010,
overall growth that allowed the company to close the BMW’s best ever month
sales gap with rivaling firm Mercedes.

Perspectives:
The Indian market appears to be slowdown-proof

25% overall growth rate of the domestic car

market in India on the period 2009 - 2010

30%
and above expected growth rate of the
domestic car market in India for the period
2010 - 2011 2010 2011

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