India's largest carmaker Maruti Udyog Ltd increased its market share to an impressive 60 per cent in May this year after a spurt in sales of its entry level Maruti 800 and premium small car WagonR.
Sales of the M-800 grew by a whopping 80 per cent in May 2003 to 16,907 units over the same month last year while WagonR clocked a robust 132 per cent growth to 5,179 units.
The excise duty cut, revamp of Maruti sales and service network and strengthening of its non-manufacturing business areas helped the company to notch up a robust market share, an industry analyst said.
The car major had crossed the 60 per cent market share in December 2002. Although its sales grew and reached an all time high in March 2003, its market share could not cross 55 per cent.
Maruti has recorded the steep growth in sales and market share at a time when customers are reaping benefits of an eight per cent excise duty reduction in the Union Budget.
The car market leader posted a 46 per cent sales growth last month to 39,178 units.
Even Omni van overcame sluggish sales and grew 13 per cent in May 2003. Maruti's cumulative (April-May 2003) sales jumped by 39 per cent as compared to the same period last year.
The benefit of the eight per cent excise duty slash, announced in the Budget for 2003-04, has helped the entire car industry and might spark a turnaround after three years of flat growth, the analyst said.
While growth was palpable in the passenger car industry across the board, the price sensitive segments had benefited the most from the excise duty reduction, industry sources pointed out.
The entry level segment grew by 67 per cent during April-May this fiscal while the compact car category, comprising of cars like Santro, WagonR and Indica, went up by 22 per cent. The 'C' segment posted a rise of 24 per cent.
Propelled by surging sales, Maruti has already started production at its third plant from last month itself.
Maruti also recorded a 47 per cent growth in exports at 2,664 units in May.
Last fiscal, it had achieved a 163 per cent growth in exports, following growing shipments of Alto.
