Riding on the strategy of focusing on first time buyers and rural markets, country's largest carmaker Maruti Suzuki India (MSI) has increased its market share in passenger vehicle segment in the first quarter of the current fiscal to 42%.
In the April-June period, the company sold 2,41,812 units of passenger cars and utility vehicles out of an industry total of 5,73,038 units, garnering 42.19% market share, according to latest SIAM data.
During the same period last fiscal, MSI had sold 2,22,645 units of passenger car and utility vehicles out of industry total of 5,58,416 units, securing a market share of 39.87% in the period.
In June, the company's market share rose to 45% with 91,226 cars and utility vehicles sold out of a total 2,04,081 passenger vehicles sold during the month.
"Some of the strategies such as focus on first time buyers, on exchange, on urban markets, on rural opportunities have started giving us results," said MSI COO (marketing and sales) Mayank Pareek.
The company closed the first quarter with over 10% growth even though the period is typically slow from the sales point of view, he said.
After long time, the company crossed the milestone of over 45% market share in monthly sales, Pareek said.
"An interesting part of the June 2014 sales is that our retail sales are greater than wholesale in the month," Pareek said, adding that performance was the outcome of efforts by field teams and strategies put in place early this year.
"First time buyers who were holding back sales are now showing signs of revival. It is clearly evident in growth of over 52% (in June) of Mini segment comprising of entry level Alto and Wagon R," he added.
The company sold 47,618 units of mini segment cars in June, up 52%, as against 31,314 units a year ago.
Pareek said sales in urban areas have revived.
"It was encouraging to see growth of over 12.5% in urban markets. Sales through exchange helped us clock over 34,000 units during the month. All these factors were clearly catalysed into positive action by the government's support to the automobile industry by way of extension of excise duty rebate," he added.