Domination in the passenger vehicle market
The passenger vehicle market across the country was dominated by Maruti Suzuki in 2022, with a share of over 46 percent. In financial year 2023, the company sold around 1.4 million cars in India. It also became the only car manufacturer in the country to sell over 20 million passenger vehicles cumulatively, by the end of 2019. The landmark was achieved in less than 37 years since the company sold its first vehicle, the Maruti 800, in 1983. After the iconic Hindustan Ambassador and Fiat Premier Padmini, Maruti 800 became the third name to be synonymous with cars across the country. Maruti produced 2.87 million 800s, of which around 2.66 million were sold domestically. This model remains the second highest production car in the country, second only to the Hindustan Ambassador. Maruti Suzuki has held on to the title of the best-selling car with the Wagon R, as most popular car in 2022.Tata Motors and Hyundai Motors have been Maruti Suzuki’s top competitors. In terms of exports, the market was led again by Maruti Suzuki with a significant margin. However, Tata Motors was the largest producer of commercial vehicles domestically. Since the acquisition of the Jaguar and Land Rover, the company had further strengthened its base in the passenger car segment giving further competition to Maruti Suzuki.
Challenges and opportunities
The automotive sector experienced a decline in the second half of 2019 due to the economic slowdown and has been further impacted by the coronavirus pandemic since early 2020. However, since financial year 2022, the sector has shown signs of recovery. The slump in the automotive sector ended in what was one of the largest auto industries in the world. The industry employed over 1.4 million people in 2019, and the end of struggles within the sector saved it from massive losses in employment opportunities.The recovery was partially due to the intervention of the Government of India. A series of initiatives were introduced by the government to encourage consumption and attract more foreign companies to set up manufacturing operations in the country. The government has also introduced many incentives and reduced taxes to boost the electric vehicles sector. Maruti Suzuki announced the launch of its electric car ‘Futuro-E’ at the 2020 Auto Expo. The electric vehicle would be the first attempt of the company in the electric vehicle market, where major competitors had already stepped in. The government was aiming to achieve 30 percent penetration in private electric vehicle ownership by 2030. Maruti Suzuki, as the largest stakeholder in the domestic car segment, has aimed to grab the top-spot as well.
