Hyundai are on fire at the moment. They’re posting good profits at a time of economic instability, their quality & reliability is winning them awards and customers like what they see in their showrooms. However, that magic formula seems to be losing its lustre elsewhere in the world. The Hindu Business Line reports that Tata Motors have snatched number 2 position from Hyundai in the Indian market. Sucks to be third!
Tata’s snatching the silver was due to the growth of new models and refreshes of its existing. Tata sold 11,448 Indicas, which benefited from a new “Vista” range, a newly launched Indigo Manza, which sold 7,258 units and the good old/new Tata Nano, which sold 4,001 units. “The Indica sales were the highest this fiscal year, of which the Indigo’s share were in fact the highest since launch in 2000. The Nano volumes also helped. Full-scale commercial production for the Nano will start from April at the Sanand plant,” said a Tata company official. All in all, Tata sold 31,081 units in January 2010, which represents a 48% growth from January 2009. Hyundai sold only 29,601 units in the same period. However, Tata still have a long fight on their hands, if they want to go for the gold and supplant Maruti Suzuki as number one car maker in India.
For the same period, Maruti Suzuki sold a whopping 81,087 units, almost treble of Tata. As the sales figures show (to anyone with a brain in their head) India loves cheap, small cars. And if it’s one thing which Hyundai do well at, it’s cheap, small cars. So why are they being overtaken in the second most populous country in the world? Does this shift represent fundamental superiority on Tata’s part, even before Nano production goes in high gear?