Maruti's market share continues to be below 50%

As rivals gain ground, the market share of the country's largest car-maker, Maruti Suzuki India (MSI), continues to hover below the 50 per cent mark, despite the firm posting its best-ever monthly domestic sales in July.

According to the Society of Indian Automobile Manufacturers (SIAM), the market leader sold 2,82,488 cars during the April-July period, representing a 47.68 per cent share in the overall 5,92,405 units market.

In the comparable year-ago period, MSI had a 53.13 per cent share of the 4,40,069 units car market, with sales of 2,33,811 units.

This is the first fiscal in which MSI's market share fell below 50 per cent. The company's loss is mainly due to Tata Motors, Ford India and General Motors India catching up following a good response to their respective small cars -- Nano, Figo and Beat.

In July this year, MSI sold 90,114 units, which included multi-purpose and utility vehicles, besides passenger cars, a 33.45 per cent rise from 67,528 units in July, 2009. This was an all-time high for MSI in any month in the domestic market.

According to SIAM data, MSI's main rival Hyundai Motor India's market share in the car segment also declined to 18.88 per cent in April-July from 20.89 per cent in the comparable period last year.

Tata Motors, whose sales of Nano picked up after opening of the Sanand plant, enhanced its market share to 14.72 per cent, with 87,202 units sold, from 11.89 per cent in the same period last year.

Likewise, small car Figo drove Ford India's share in the domestic car market past the 5 per cent mark for the first time, with sales of 30,578 units. It had a mere 1.71 per cent share in the same period last fiscal.

General Motors India also increased its market share to 4.87 per cent, selling a total of 28,846 units, mainly on the back of its latest hatchback, Beat. It had a 3.31 per cent share in the corresponding period of 2009.

As per the SIAM data, MSI enjoyed a market share of 47.94 per cent in the cars segment in July, compared to 52.15 per cent in the same month last year. It sold 76,111 cars last month against an industry total of 1,58,764 units.

In order to defend its market share, MSI has started taking many initiatives, like launching a new version of its best selling model, Alto, last week at an introductory price between Rs 3.03 lakh and Rs 3.16 lakh (ex-showroom Delhi).

In addition, in an unprecedented move, the company has geared up to launch five vehicles -- Alto, Estilo, WagonR, Eeco and SX4 -- in CNG variants in a single day this week.