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Maruti’s market share dips to 41%, lowest in a decade

Thanks to the ongoing impasse at its Manesar plant, Maruti's marketshare in the Indian car market has fallen to 41% in the last three months, the lowest for a quarter in a decade, and a 7 percentage point drop over the last year.

autos Updated: Oct 18, 2011 02:02 IST
Sumant Banerji
Sumant Banerji
Hindustan Times
Hindustantimes
         

Thanks to the ongoing impasse at its Manesar plant, Maruti's marketshare in the Indian car market has fallen to 41% in the last three months, the lowest for a quarter in a decade, and a 7 percentage point drop over the last year.

With the unrest directly impacting the fortunes of the Swift, Maruti's biggest success in recent times, at a time when demand for its other cars is suffering due to overall low consumer demand in the market, the firm's share has fallen sharply from over 50% last year.

“This is just a temporary blip largely due to the low production of the Swift that has suffered the most due to the labour problem,” said a company spokesperson.

The firm's share, however, has been shrinking much before the current round of unrest crippled its production in Manesar, albeit at a slower pace. In the January-March quarter of 2010, Maruti's share dipped below 50% for the first time ever as new entrants like Ford Figo, Volkswagen Polo and Chevrolet Beat clipped into its pie.

The labour problem has only accelerated the fall. http://www.hindustantimes.com/Images/HTEditImages/Images/18-10-pg13b.jpg

Its share has been below 50% in every month this fiscal, dipping to a low of 39% in July.

“The company does not have any new car launch until next year and that will hamper its progress in the immediate future,” said a senior automotive analyst.

“Newer cars have come in and expanded the market at a rate higher than the growth of the company. Its share may fall further and settle at around 30-35% in the medium term.”

With no end to the prevailing imbroglio in sight, an immediate turnaround looks unlikely.

First Published: Oct 17, 2011 23:52 IST

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