The nation’s largest carmaker, which has seen its market share drop to 43.38 per cent in FY22 from 47.7 per cent in FY21, goals to herald a number of SUV merchandise with concentrate on new applied sciences like hybrid powertrains with the intention to improve gas effectivity, making them comparable or higher than diesel-powered fashions which are at present being bought available in the market, particularly by its Korean rivals.
With no intention of creating a comeback within the diesel phase, MSI can also be specializing in growing its play within the CNG phase to herald extra volumes.
The firm had a market share of 51.22 per cent in 2018-19 and 51.03 per cent in 2019-20.
In an interplay with PTI right here, MSI Senior Executive Director (Marketing and Sales) Shashank Srivastava famous that the corporate will pull out all thew stops to realize again the misplaced market share.
“It’s a war cry..it is there in our organisation..it is like constructive paranoia…which means you cannot rest easy.. it doesn’t take much time for the market dynamics to change, so we are always on our toes as how to improve efficiency, productivity etc,” he famous when requested in regards to the firm’s pondering on regaining the 50 per cent market share.
Srivastava mentioned that within the non-SUV phase, the corporate’s market share was at 67 per cent degree, with management positions in each hatchback and MPV segments.
He acknowledged that lack of merchandise within the quick rising SUV phase had impacted its total market share.
Elaborating on the phase dynamics, Srivastava famous that whereas the corporate led the entry-level SUV phase with Brezza, it was solely within the robustly rising mid-SUV phase the place it lagged behind the competitors with tepid response for S-Cross.
“So, overall our market share in the SUV vertical is just 12 per cent. This is where we are now making efforts to bolster our presence,” Srivastava mentioned.
He famous that whereas the corporate struggled with sub par efficiency within the phase, among the competing corporations had been getting as a lot as 60 per cent of their gross sales from SUVs.
When requested if the shortage of diesel powertrain possibility is also part of low offtake within the vertical, with opponents already providing their merchandise with each petrol and diesel powertrains, Srivastava replied within the destructive.
He identified that the share of diesel automobiles has come down drastically to about 18 per cent from the highs of 58 per cent a number of years in the past.
“In the hatchbacks it’s lower than 0.5 per cent, in sedans it’s about 1.5 per cent, in MPVs it has come down to twenty per cent, so total it’s 18 per cent, which is coming from the mid-sized SUVs.
In this phase we imagine there’s acceptance for diesel because it lacks an excellent petrol-powered automobile,” Srivastava mentioned.
Citing the instance of Brezza, he famous that within the entry-level SUV phase the share of diesel trims was within the vary of 88 per cent which has now come right down to about 20 per cent.
“We discontinued the diesel and brought Brezza with 1.5 litre petrol ..this suddenly changed the dynamics and 88 per cent became 20 per cent..we believe this will happen in mid-SUV as well..,” Srivastava said.
He famous that within the hatchback phase it was a transparent chief with a dominant market share of 70 per cent whereas within the MPV phase additionally, it was approach forward with its market share rising from 35 per cent in 2019 to 61 per cent final fiscal.
When requested particularly in regards to the entry-level hatchback phase, Srivastava famous that out of the full 16-17 hatchbacks within the trade, seven belonged to MSI.
He famous that the corporate would preserve rejuvenating the merchandise within the phase in future as nicely with it nonetheless being the biggest quantity generator for the auto main.
Srivastava additionally hinted that the corporate could herald fashions, relying on the phase, with robust hybrid powertrains.
“It is possible. While I cannot comment on what we are actually doing, it is a very logical thing,” he said when requested if MSI merchandise may see a transition from delicate hybrid methods to robust hybrid applied sciences.
Srivastava mentioned that affordability was a giant concern and there was a price concerned with the robust hybrid expertise.
“So we have to be very careful which direction we have to go,” he famous.
Srivastava famous that transition from hybrid expertise, which options each inner combustion engine and battery, to pure battery electrical automobiles might be a greater possibility for India which at present lacked charging infrastructure.
“There is a consensus in the industry that EVs will become mainstream going forward. However, there is no consensus when it is going to happen….analysts are saying that by 2030, 10-12 per cent of the sales will be EVs..you can’t wait for it to become 100 per cent to take care of the environment..so what happens..one of course is to make engines more efficient and the other thing is to have hybrid which is cheaper to acquire than EVs..and that is the transition we are talking about..that could well be the road to electric,” he said.
Srivastava mentioned the concentrate on hybrid expertise may additionally assist in decreasing the price of native manufacturing of a number of EV parts.
“If you want to bring down the cost of EVs in India, you need to have localisation. There is some similarity in the components used in the strong hybrids as well as EVs. So if you have a larger volume, localisation can improve, ” he mentioned.
The downside with EVs proper now could be that the volumes are low with gross sales of simply round 16,000 items final yr, accounting for simply 5 per cent of the general passenger automobile gross sales, Srivastava mentioned whereas hoping for some push for the phase, like EVs, from policymakers.
MSI plans to launch a number of EVs, with the primary one anticipated to hit the market in 2025.
Source: www.financialexpress.com”