The bustling Indian car market has undergone many changes. During the last four years, regulatory and policy changes, new car models and prices have made a difference. While carmakers pursuing the top two leaders made inroads by growing market share, it wasn’t accompanied by profits. Therein lies the story.
Rs 2.5 lakh cr: Estimated total revenue of Indian automakers last fiscal year
13%-25%: Rise in realization per vehicle in last 3 years
Key triggers: Rising volume, increasing average selling price, but yet to scale peak volumes
15%: Market share of cars with price tags of `15 lakh vs 2% in FY18
Headwind: Rising costs weighing on margins
Maruti
Volume grew13% in FY22
Operating margin remained in the low single digit
Tata Motors
Significant recovery seen in volumes
EBIT remains in negative territory
M&M
Automotive biz had an EBIT expansion of 182 bps to 3.7% in FY22
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