Mahindra’s UV market share which stood at an impressive 55.59% in 2011-12 has been dwindling of late. The Indian automaker ended 2015-16 with a market share of 37.9% but in the first four months of the current financial year, the figure got reduced to 29%.
Mahindra’s attempt to arrest the slide by launching new products in the last 12 months hasn’t produced any fruitful results. The incremental sales from the TUV300, KUV100, and NuvoSport didn’t quite meet the company’s internal expectations.
Price corrections and discounts by rivals have rendered the TUV300 expensive.
While the TUV300 and KUV100 showed strong potential in the initial stages, their demands got moderated in the following months. The NuvoSport which is essentially a Quanto with a new front fascia didn’t really make a noticeable impact in the sub-4 m SUV category.
The discounting and price correction of vehicles like Ford EcoSport and Maruti Vitara Brezza also impacted the sales of Mahindra’s sub-4 m offerings. The very consistent Bolero too has been witnessing a downfall in volumes due to poor rural market conditions.
The KUV100 entry-level mini crossover started off strongly but the demand now is moderate.
However, Mahindra takes comfort from the fact that it still is the market leader in UV segment. It expects Bolero’s sales to recover in the post monsoon months. The company is also working on a strategy to shield its products from future discounts and price corrections by rivals.
Considering that Mahindra has nothing much left in its product pipeline in the short term except the new Bolero variants, the company is expected to tweak the market positioning and marketing strategy for the existing models to extract more volumes in the coming months.
Via – Livemint.com