Kia bags third largest carmaker position in India
Kia comes up as the third-largest carmaker in India while pushing Mahindra and Mahindra to the fifth position. Kia's Seltos was warmly welcomed by the Indian market with a 6.24 per cent share in February 2020 and while enjoying the success of the Seltos, the South Korean carmaker also launched its MPV Carnival recently. Apart from Kia, 11 of the 14 carmakers in India recorded a combined five per cent decline in market share.
Mahindra and Mahindra face its lowest market share ever with 4.36 per cent due to the outbreak of the Covid-19 virus. It has affected the supply chain of many manufacturers, especially at such a crucial time with BSVI norms applicable from April 2020. Covid-19 has also affected the SAIC-owned MG Motor as well, their sales dipped by 56 per cent at 1,376 units sold and 150 units of the recently launched electric SUV ZS EV.
Despite the Covid-19 scare, some players have still managed to remain at the top of the market. Maruti Suzuki sold 1,33,700 units which gives it a 53.33 per cent market share and it is followed by Hyundai that has sold 40,010 units, which amounts to a 15.96 per cent market share. French carmaker Renault surpassed the Japanese carmaker Honda Cars India and sold 8,784 units in February as compared to Honda's 7,200 units. Volkswagen, Fiat, Skoda and Nissan suffered a one per cent decline of market share.
Veejay Ram Nakra, Chief of Sales and Marketing, Automotive Division, M&M, said, "The ramp-down of BSIV vehicle production has been in line with our plan for February. However, because of the unforeseeable challenges on the parts-supply from China, our BSVI ramp-up has been affected. This has resulted in high degrowth in our billing volume for February." He also added that dealer inventory of the BSVI vehicles is under 10 days, and entering March will be a challenge on parts-supply which will continue for a few weeks before everything gets back on track.
Rakesh Sidana, Director Sales, MG Motor India, said, "The unforeseen Coronavirus outbreak has severely affected our European and Chinese supply chains, disrupting our production and impacting our sales in February and will continue through March."