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Top 3 auto companies hold 70% market share

Being the top three automobile brands in India has its perks. India is the only country in the world where the top three auto manufacturers increased their market share to 70% for April-December 2015 compared to 67% in 2012, according to industry data. The pecking order has largely remained unchanged in the last five years. Also, the share of the top 10 models in the total sales has remained more than 50% for the last three years. The only change in the pecking order has been Mahindra & Mahindra moving into the third slot in 2013-14, ousting Tata Motors.

Auto marketers say this overwhelming dominance of a few players in a market, which has 18 car and SUV manufacturers, is something peculiar to India alone. R S Kalsi, ED (marketing & sales), Maruti Suzuki India, said, "There is no other example of this trend anywhere else in the world and the highest marketshare by a single company, apart from Maruti in India, is Toyota in Japan with around 30%."

Indeed, the top two's dominance of the market becomes obvious when one considers that their incremental volumes are more than what some of their competitors sell in a year. Rakesh Srivastava, senior VP (sales and marketing), Hyundai Motor India, said, "Last year, our sales went up 16% to 4.76 lakh units in the domestic market and this incremental increase is higher than the annual sales volume of 10 auto companies in India."


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