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Utility vehicles competition increases - Views on News from Equitymaster
 
 
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  • Jul 13, 2000

    Utility vehicles competition increases

    The entry of the Toyota Qualis in the past year has resulted in higher competition in the utility vehicle (UV) segment. It managed to capture a 2.9% market share in FY2000 and is expected to do well in the current year too. To counter this competition Telco and Mahindra & Mahindra (M&M) will be introducing new models to protect their market share.

    Telco has been very active on this front and has already launched few of its Sumo variants. As a result its sales have increased by 13.8% YoY from April-June'2000. The company will be launching 6 new Sumo variants during the year. Besides the company will be launching the "Spacio", which is a product aiming to cater to both the rural and urban market. The company's market share is expected to go up in the current year from 24.9% in FY2000.

    Utility Vehicles FY2000 Mkt share
      (nos.) FY2000
    M & M 70,433 58.2%
    Telco 31,983 24.9%
    Maruti Udyog 8,705 7.0%
    Bajaj Tempo 6,133 5.0%
    Hindustan Motors 2,649 2.0%
    Toyota Kirloskar 3,519 2.9%
    Total 123,422 100.0%

    On the other hand M&M's utility vehicle volume for April'2000 at 4,417 vehicles reported a drop of 16% YoY. This is mainly due to higher competition from Toyota Qualis and Telco's deluxe Sumo version. M & M too has planned a new product the "Bolero" (newly styled Armada based model) to counter competition from these two vehicles. However as M&M's product will be entering the market later as compared to others, the company is expected to loose market share in the utility segment in the current year.

    In the current year there has been an overall slowdown in the UV segment though it is performing better than medium/heavy commercial vehicles and light commercial vehicles. The reasons for this slowdown are the recent drought condition in some states and unified sales tax rate leading to higher prices of vehicles.

     

     

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