The shift towards higher-priced vehicles and SUVs has meant that the lower market share companies such as Hyundai and Kia are making more revenue per vehicle.
In FY22,
, despite selling 11% lower volumes than in FY19, had delivered almost similar revenue, whereas , which has a strong tailwind in its volumes, saw its revenue double since FY19, even as the volumes grew 76%.
While Maruti Suzuki has the largest market share, its operating margin over the last few years has dropped by over 500 basis points in the last few years. On the contrary, Hyundai – continues to operate in a double-digit margin between FY19 and FY21.
The biggest gainers in profits have been Tata and Kia India. From a negative operating margin in FY19 for Tata Motors, the maker of Nexon and Harrier swung into a 5% operating margin at the end of FY22, whereas Kia operations broke even in less than three years of its entry and is inching towards a double-digit operating margin.
