Toyota beats Tata and Honda to become 4th largest carmaker in H1FY20
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Industry experts believe that Glanza has been able to crack the compact hatchback market which Toyota Liva failed to do.
Industry experts believe that Glanza has been able to crack the compact hatchback market which Toyota Liva failed to do.

NEW DELHI: For the first time the Indian subsidiary of Japanese car manufacturer Toyota Kirloskar Motors has surpassed Tata Motors and Honda Cars in India to become the fourth-largest car manufacturer of India in terms of market share, according to the industry data.

The maker of premium utility vehicles like Innova and Fortuner recorded a market share of 4.86 per cent in the first half of the fiscal year 2019 (April to September period). It witnessed an increase of 23 basis points when compared to 4.63 per cent market share in the same period last fiscal year. While the competitors like Tata Motors and Honda Cars India saw a decline of 1.9 percent and 0.9 percent in market share respectively.

Rank OEMs Market Share H1 2019 Market Share H1 2018
1 Maruti Suzuki 50.20 52.82
2 Hyundai 18.49 15.94
3 Mahindra & Mahindra 7.52 6.53
4 Toyota Kirloskar Motors 4.86 4.63
5 Tata Motors 4.75 6.21
6 Honda Cars India 4.60 5.49
7 Ford India 2.69 2.85
8 Renault 2.67 2.33
9 Volkswagen 1.10 1.06
10 Kia 1.06 NA
11 Nissan Motors 0.72 1.15
12 Skoda 0.51 0.47
13 MG Motors 0.46 NA
14 FCA 0.36 0.52

Primarily the reason behind the rise in the market share of Toyota Kirloskar Motors is the increased contribution of Glanza in the total sales of the company. Launched in June 2019, the re-badged version of Baleno is averaging 2000 units of sales monthly.

For our latest offering (Glanza), we have focused on the customers-for-life approach targeting millennials. This approach is helping us get first-time Toyota buyers thus helping us increase our customer base.N. Raja, Deputy Managing Director, Toyota Kirloskar Motors

Moreover, despite the industry-wide slowdown, the carmaker has been able to maintain average sales of vehicles like Innova and Fortuner.

Commenting on how Toyota sustained the slowdown, N. Raja, Deputy Managing Director, Toyota Kirloskar Motors, said, “In these tough times faced by the industry, we have followed the basics by taking care of our customer’s needs and tried to exceed their expectations at all touchpoints of sales and service.”

On the performance of Glanza, he added, “Even for our latest offering (Glanza), we have focused on the customers-for-life approach targeting millennials. This approach is helping us get first-time Toyota buyers to experience our service and thus helping us increase our customer base.”

Industry experts believe that Glanza has been able to crack the compact hatchback market which Toyota Liva failed to do. Offering Glanza to personal buyers and Liva to fleet operators is a win-win situation for Toyota.

Moreover, Glanza is amongst the first model to be launched from the Toyota-Suzuki agreement and has clearly strengthened and added to Toyota’s presence in the Compact Hatchback segment.

Toyota Glanza‘s petrol engines are also BS6-compliant, with 5-speed manual as well as a CVT transmission options, making Glanza an easier consideration, keeping in mind emission norms announced from next year, and some competitive pricing.

“Alliance with Suzuki has already started giving Toyota fruitful results. The continued launches i.e Ciaz, Vitara Brezza etc. in the coming years will help Toyota to further add the volumes,” said Gaurav Vangaal, Country Lead, Production Forecasting, IHS Markit.

Going forward, Toyota will also get Ertiga MPV, Vitara Brezza compact SUV and the Ciaz sedan from Maruti Suzuki to sell in India. By 2022, the local unit of Toyota will start making Suzuki cars in its factory at Bidadi on the outskirts of Bengaluru.

With Tata Motors having degrowth of nearly 60% and Honda 37% in September, versus the same month last year.

“It’s not surprising for Toyota to move up to 4th position nationally, having had a relatively lower 18% degrowth. Toyota’s moving up the ladder last month is an affirmation of the dual badging strategy alliance with Maruti Suzuki working, with Toyota Glanza achieving over 11,000 cumulative shipments since its introduction in June, making its Toyota’s second best-selling model in the country, after Innova Crysta.” said Vinay Piparsania, Global Consulting Director-Automotive, Counterpoint Research.

It is to note that these sales degrowth rates are based on wholesale shipment numbers to dealers reported in the press for September 2019. Typically dispatch figures, show a seasonal peak in the year at this time, with dealers ordering higher volumes to build up inventory for forthcoming festive months.

“Honda has not brought out any major products whereas the dismal performance of Harrier has been hurting Tata,”added Vangaal on the declining sales performance.

Rank OEMs H12019 H12018 %Change
1 Maruti Suzuki 663522 908530 -26.97
2 Hyundai 244434 274177 -10.85
3 Mahindra & Mahindra 99342 112233 -11.49
4 Toyota Kirloskar Motors 64180 79563 -19.33
5 Tata Motors 62844 106865 -41.19
6 Honda Cars India 60870 94486 -35.58
7 Ford India 35566 49038 -27.47
8 Renault 35314 39998 -11.71
9 Volkswagen 14520 18167 -20.07
10 Kia 13990 NA NA
11 Nissan Motors 9568 19741 -51.53
12 Skoda 6734 8162 -17.50
12 MG Motors 6134 NA NA
14 FCA 4815 8985 -46.41
1321833 1719945 -23.15

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