Mahindra & Mahindra has become the country’s largest commercial vehicle manufacturer by getting past the former dominant leader Tata Motors. In the sub 3.5 tonne segment, Mahindra’s shares have dramatically increased from 31 per cent in the FY2013 to 49 per cent in the FY2016.
In the Financial Year 2015, Mahindra and Tata Motors have had 45 per cent share each as in the previous two fiscals the former clawed back 14 per cent from the latter in the sub 3.5 tonne market if the passenger carrying versions of the pickups are included. In doing so, Mahindra has not just surpassed Tata Motors but now holds a commanding 15 per cent lead in the load or cargo carrying truck segment.
This particular segment saw 52 per cent sales of Mahindra as against Tata’s 37 per cent. The gain in market share is due to M&M selling 1,54,653 units in FY2016 as compared to 1,11,981 deliveries from Tata. Between FY2013 and FY2016, Mahindra’s market share in this industry have jumped close to an astonishing 20 per cent.
Despite being the pioneer of the mini-truck segment with Ace pickup over a decade ago, Tata has now been encountering competition from Mahindra in every possible space. Subsequently, the company has lost 22 per cent decline in the last four years in the mini-truck sales.
The SCV (Small Commercial Vehicle) segment hasn’t had an encouraging outing in the last three years with the market shrinking to 3,34,076 units in FY2016 from 5,64,076 retailed figures in FY2013. The major changes have happened here for both the fierce home-grown rivals when we look deep.
The mini-truck segment branches out into below 2 tonne and between 2 and 3.5 tonne spaces. In the under two tonne segment, Tata Motors reigns supreme still courtesy of the range of Ace small truck helping the brand to sweep 70 per cent market share. But the tide has turned around in the 2-3.5 tonne segment, as Mahindra wrapped up nearly 70 per cent there in contrast.
In the last fiscal, Tata’s shares in the sub-2 tonne space dropped by 10 per cent whereas Mahindra gained 12 per cent with a superlative sales increase of 80 per cent due to the success of the Jetto. Tata Motors struggled during the transformation from small trucks to pickups in recent years. With the launch of Ace Mega and Super Ace Mint, the company hopes to regain the lost momentum in the current fiscal.