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Competitors hammer Maruti

Aug 18, 1999

Competition is good for the consumer, so what if its not good for Maruti. 1QFY2000 passenger car sale figures reveal that new entrants like Hyundai, TELCO and Daewoo have eaten into Maruti's market share. From 83.8% in 1QFY99, Maruti's market share has plummeted to 68.9% in 1QFY2000. Although Maruti's market share has plunged considerably, it has sold more cars in 1QFY2000 - 89,131 units, compared to 78,395 units in 1QFY99.

Hyundai (Santro) occupies 2nd place with approximately 10% market share. TELCO (Indica) has cornered 6% share and occupies the third slot. Daewoo (Matiz) is in the fourth slot with 4.5% share.

Competition was always something that the small car segment lacked all these years. Maruti was the only car in this segment and ruled the roost with near 100% market share. But that changed last year, when the new kids arrived on the block. Ever since, Maruti has found it a struggle to protect its market share.

In April-May 1999, Maruti was the laggard in the car segment with 13% growth, while the segment clocked 35% growth during the same period.

One reason why Maruti has surrendered market share is due to the fact that it could not sell its cars in the National Capital Region (NCR). This is so because Maruti vehicles do not comply with the Euro I and Euro II emission norms. Meanwhile Maruti's competitors - Daewoo, Hyundai and TELCO, have already complied with the emission norms.

The car segment is expected to witness significant growth in view of production increases planned by TELCO, Hyundai, and Daewoo. According to CMIE's projections, the segment looks set to grow by 20% in FY2000.

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