Mahindra & Mahindra, the undisputed leader in utility vehicle (UV) segment, until now, has come under severe competition in the recent past, especially in the first quarter of 2017 financial year.
In the first quarter of 2017, M&M lost its pole position in the UV segment to the country largest carmaker, Maruti Suzuki India Ltd. (MSIL). Leading from the front for Maruti is its compact SUV Vitara Brezza. The Brezza seems to have captured the imagination of Indian buyers.
According to reports from the MSIL and Society of Indian Automobile Manufacturers (SIAM), Maruti sold 57,125 utility vehicles which include Vitara Brezza, Ertiga and S-Cross, moving up the ladder with a market share of 30.05 percent in the first quarter of 2017.
Mahindra's market share declined to 27.92 percent in Q1 of 2017 from 31.62 percent market for the same period last year. Mahindra was able to sell 53,082 unit during the same period and was unable to catch up to Maruti's surging sales.
Maruti sold 1.45 lakh units of Brezza since its launch and currently is the largest selling UV in the segment. Maruti witnessed growth in sales of 45 percent in Q1 of 2017 recording 7.7 percent growth.
With Goods and Service Tax implemented and the subsequent reduction in prices of automobiles will only add to the sales of the Maruti Brezza. Maruti Suzuki has analysed the Indian market well and offered the right combination for an SUV suitable for the Indian buyers.
Despite having just one engine on offer for the Brezza, the compact SUV is one of the leading product for the company.
Tata Motors is all set to launch Nexon, its compact SUV, and Hyundai is also looking to offer a UV in the segment. This could heat up the warfare in the segment, but with the brand value and vast service network, Maruti Suzuki seems to have consolidated its position in the UV segment.