Even as Maruti Suzuki is addressing market share concerns, financial services company Nomura Holdings expect Maruti to continue facing market share pressure. Nomura's Kapil Singh told CNBCTV-18 that it is concerned about the lack of electric vehicle portfolio in Maruti.
Earlier in November, Maruti Suzuki announced that it is joining the EV race and plans to launch its first EV by 2025. Managing Director Kenichi Ayukawa told CNBC-TV18 that Maruti will continue to pursue its CNG programme and a flexible fuel engine is also under development. He added that the company has no plans to bring back diesel products in India.
Due to the semiconductor shortages, Maruti Suzuki’s production and sales declined in November. The total sales fell on a year-on-year basis to 139,184 units from 153,223 units during the same period of the corresponding year. Domestic sales were 113,017 units, and sales to other original equipment manufacturers stood at 4,774 units.
Nomura is 'neutral' on Maruti, however, has an 'outperform' rating on Tata Motors.
Tata motors has gained market share in the passenger vehicle business and profitability for operators has hit a level not seen in two years, said Singh.
The Federation of Automobile Dealers Association (FADA) issued data on commercial vehicle manufacturers' market share in November, with a year-over-year comparison. According to these figures, Tata Motors' market share increased by 8.80 percent year over year, from 34.99 percent in November 2020 to 43.79 percent in November this year.
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In November 2021, the auto behemoth recorded commercial vehicle sales of 25,132 units, up from 17,720 units in November 2020.
The price rise in the commercial vehicle business will also aid Tata Motors' margin, said Singh.
"We believe Internal Combustion Engine (ICE) business in India has peaked out
and all automakers in India will have to come out with EVs going ahead," added Singh.
For the full interview, watch the accompanying video.
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