Automobile majors have been losing market to their smaller/ newer counterparts in the last six years. Tata Engineering and Locomotives (Telco), Bajaj Auto and Maruti Udyog are facing severe competition from segment counterparts Ashok Leyland, Hero Honda and Hyundai Motor India, respectively.
Hero Honda now commands a nearly 50 per cent market share in the motorcycle segment based on its sales of the first 10 months of the current year. Bajaj Auto commands a market share of 25 per cent, while Yamaha Motors has a modest 8 per cent share.
Six years back, the pecking order was different. Hero Honda was at the number two position with a market share of 29 per cent. Bajaj Auto was at the top with a 30 per cent market share. Yamaha Motor was third with a market share of 23 per cent.
The changed pecking order reflects a timely shift in business strategies and adaptation to new technology. Hero Honda visualised the shift in consumer choice from scooters to fuel-efficient motorcycles much earlier than its competitors.
On the other hand, Telco had to pay dearly for attempting a presence in all segment of the auto industry. In the heavy commercial vehicle segment, Telco's share slipped from 74 per cent in 1995-96 to 68 per cent during the fiscal 2001-02 (first ten months). As against this, Ashok Leyland's share climbed up from 26 per cent during 1995-96 to 32 per cent this year.
Similarly, while six years back, Bajaj Tempo and Telco controlled 80 per cent of the light commercial vehicles (LCVs) market, their share is down to 59 per cent now. The flip side is that the earlier small players -- Eicher Motors, Mahindra and Mahindra and Swaraj Mazda -- together have more than doubled their share to 39 per cent this year. In 1995-96 they shared just 15 per cent of the total volumes.
The car segment, uniquely characterised by a flood of new entrants in the last four years, has seen a drastic change in the market share pattern. Maruti Udyog, which ruled the market till 1998-99 with an average share of over 80 per cent of the volumes, saw its share dip to 60 per cent during 2001-02.
The new launches and upgradation of models couldn't overshadow the "newness" of the competitive products from newer players. This saw the share of Hyundai Motor India, Ford India and Telco's Indica increase considerably. As against this, Hindustan Motors which was earlier the second biggest player, saw its share slip to three per cent from eight per cent six years back.
The story in the multi-utility vehicles segment is similar with old leaders Mahindra and Mahindra and Telco running out of fuel. Their combined share fell from 88 per cent six years back to just 67 per cent this year. In contrast, Toyota Kirloskar Motor, which entered the market in 1999-2000, capturing 22 per cent of the market in two years.
