Five years ago, 50 percent of cars sold in India were diesel but this has fallen to just 23 percent in recent times which is a significant loss
Mahindra is a UV marker as most of the products compete in either SUV or Compact SUV segment. Since 2012, Mahindra is facing stiff competition from new rivals as the company had more than 50 percent market share in 2012 but it has fallen to just 25.38 percent in FY 2018. Mahindra is not loosing hope as the company is expecting sales to pick up in the near future.
One of the main reasons for the dropping in sales is the demonised diesel as the price of diesel is increasing and the gap between petrol is decreasing which is causing concerns for the buyers as more people prefer petrol cars over diesel as most of the manufacturer price petrol models lower compared to diesel models.
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Five years ago, 50 percent of cars sold in India were diesel but this has fallen to just 23 percent in recent times which is a significant loss. Most of the models of Mahindra are powered by diesel engine and they are developing petrol engines to meet the new trend of buyers. But Mahindra expect diesel to become friendly when the new BSVI emission comes to effect.
The BSVI diesel engines produce less emission compared to petrol cars and they can be more efficient also as a diesel car can return 15 kmpl compared to just 9 kmpl by petrol. Also diesel cars are fun to drive thanks to impressive torque out puts which pulls them more eagerly. India will move to BSVI emission norms by April 2020 and all the cars sold after the deadline must be BSVI complaint.
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The last few years were really bad for the company but Mahindra is picking up momentum as the company sold 24,593 units in January-March 2018 and they are leading the UV segment once again. This growth is thanks to the repositing on TUV 300 and KUV 100 Nxt as an entry level model. The Bolero and Scorpio sales are also improving especially in rural areas. Mahindra is focusing on rural and urban areas to continue the growth moving forward.
The Indian manufacturer recently introduced XUV 500 facelift which is also bringing good numbers for the company. The company expects this momentum to continue this year and they are planning to launch TUV 300 Plus which is a stretched version of regular TUV and premium flagship SUV XUV 700 in India.