Sales volume of Maruti Suzuki has dropped significantly for multiple reasons including the Covid-19 pandemic and no new launches in recent times
Growth of Tata Motors in the passenger vehicle market has been phenomenal. From being a brand which was generally considered as someone who made cars for taxi segment (thanks to Indica) – Tata has now become one of the go-to brand for many new car buyers today.
All cars Tata has on sale today, are the new gen cars which were launched post 2016. They have discontinued all their old cars. Tata’s turnaround story started with the launch of Tiago in 2016. This was followed by the launch of Tigor, Nexon, Harrier, Altroz, Safari and Punch.
In the period from 2016 to 2021, Tata has launched an amazing line-up of cars, some of them have even gone and become best-sellers in their respective segments. Not only their cars score high on features, but they also score high on safety. Tata is the only Indian brand to have three 5-star rated cars on offer in the country – Nexon, Altroz and Punch.
Tata Motors Profit Per Car
Much of the growth in volume from the homegrown carmaker can be attributed to the qualities mentioned above. As per a recent report from ET Auto, the company is even making more money on a single car in comparison to market leader Maruti Suzuki.
Tata Motors made an operational profit of Rs 45,810 per car in the second quarter of FY 2021-22. This is nearly double of what Maruti earned on a single car on an average during the same period. This was the first time in a decade that Tata Motors made more money per car than the country’s largest carmaker.
Operating margins for Tata Motors’ PV division rose to 5.2 percent in the second quarter of FY22. On the other hand, for Maruti, it dropped to 4.2 percent, a multi-quarter low. Operating profit Tata Motors PV business is equivalent to 45% of Maruti Suzuki in the September quarter. Total volume sold by Tata Motors stands at 22 percent of total volume sold by Maruti in the second quarter of FY22.
Reasons for increase in volume for Tata
The growth in profits and sales volume is mainly attributed to a strong portfolio with a wide range of cars. This is aided by a strong demand momentum, flexibility and agile production and supply chain management. Production is further backed by R&D efforts that quickly introduced re-engineered products relying on standard chipsets that ensured better supply and less waiting period.
The other main worry for all major automakers has been the shortage of semiconductor chips around the world which has hampered production across all industries. The crisis is speculated to improve in the coming few days which should result in greater optimisation of resources for production.
Newest Tata Car Enters Top 10 In 1st Month
Tata Motors recently launched a new micro UV in the form of Punch which managed to garner a sales volume of over 8,000 units in October this year. It was also able to break into the top ten selling cars list in the first month itself. Offered in four trims namely Pure, Adventure, Accomplished, and Creative, Punch is currently offered at a price between Rs 5.49 lakh and Rs 9.09 lakh (ex-showroom).