The leading car manufacturer Tata Motors has managed to maintain its leading position in the UV field despite fierce competition in the segment.
In the first quarter of this fiscal, Tata Motors replaced Maruti Suzuki to become No. 1 in the UV segment, supported by strong volume growth of its new SUVs.
With strong demand and a flurry of new launches, the UV segment saw increased action and players like Mahindra stepped up presence with a significant increase in volumes amid production constraints due to chip shortage issues. Leading players like Maruti and Hyundai also introduced new products to regain their presence and market share.
But with strong demand for its SUVs like Nexon and Punch and growing response to other products like Harrier and Safari, Tata Motors sales showed a strong upward curve in the September quarter.
According to data, Tata Motors sold 181,481 units in the UV segment in the first half of this financial year. The company sold 87,943 units in the first quarter of this fiscal year and 93,538 units in the September quarter. Over the past two quarters, SUVs have accounted for about two-thirds of the company’s total solar sales. During the first quarter, SUVs accounted for 68 percent of solar cell volumes.
“Led by record sales of Nexon and Punch, SUV sales contributed 66 per cent of the quarterly (September) PV sales. Going forward, we expect the Christmas season to witness strong retail sales on the back of an improved range of vehicles,” said Shailesh Chandra, CEO of Tata Motors Passenger Vehicles Ltd.
Recently, the company celebrated the production milestone of 4 lakh units for its 5-star safety rated Nexon, which was launched in September 2017. Moreover, its another 5-star compact SUV Punch achieved the production milestone of one lakh units last month. Punch became the first SUV to achieve this record in ten months since its launch in October 2021.
With an impressive new lineup of SUVs, Mahindra’s sales have increased in recent months. Last month, it achieved the highest monthly SUV sales ever at 34,262 units. As a result, the company secured the number 2 position in the segment pushing Maruti to the third position. Mahindra’s total UV volumes, including SUVs, stood at 167,052 units in the first half of the year, while Maruti’s total volumes were 163,630 units. Hyundai has occupied the number 4 spot, followed by Kia.
Competition in the UV area will intensify further in the coming months. Most of the players have a huge backlog and with some relief from chip problems, the companies are expected to ramp up production to meet delivery schedules. The waiting time for vehicles has been reduced. However, it is still high for some models like the newly launched Scorpio N, XUV700 and Ertiga CNG.