The car story, in market & margins

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
EBIT nearly half of FY18 and FY19 margin levels