A report shows that more Indians prefer buying Indian-brand cars because of safety standards and service accessibility.
A seemingly increasing number of Indian consumers have started purchasing cars from Indian brands like Mahindra & Mahindra, and TATA Motors.
According to data compiled by the Mint, the total sales of TATA vehicles in Jan 2023, increased by 6.4 percent compared to Jan 2022, while the total sales of Mahindra & Mahindra increased by almost 37 percent compared to Jan 2022.
Balaji who is looking to purchase the new Mahindra Thar said, “Build quality is the main factor, in both TATA and Mahindra cars. They have strong chassis unlike Korean and Japanese counterparts at the same price point.”
Radha, a salesperson at the Mahindra showroom in Mysuru Road said, “The XUV 700 is in high demand right now and the waiting period for the car is one year. This car fits into the budget of anybody who prefers an XUV, which is around Rs.25 lakhs.”
The major Indian players in the automobile market for cars today are TATA Motors, Maruti Suzuki, Hindustan Motors, and Ashok Leyland. Maruti Suzuki is a joint venture between the government of India and the Suzuki Motor Corporation, Japan which owns 56.2 percent of the company. Hindustan Motors has reported no sales and has reported a net loss of Rs. 1.15 crores in January 2023. Ashok Leyland deals with commercial vehicles like trucks, buses, and lorries.
The only Indian brands manufacturing and selling consumer cars are TATA Motors and Mahindra & Mahindra.
Lakshmi, the owner of a TATA Tiago, said that she purchased her car in July 2022 and looked out exclusively for TATA cars in her budget of about Rs.4 to 5 lakhs. She felt it was better to purchase an Indian brand for both safety and service. She said that the performance and affordability of Indian brand options helped her make her purchasing decision.
The Q3 results that ended December 2022 for TATA Motors were Rs. 3,043 crores, and in the same quarter in the previous fiscal year, the company faced a net loss of about Rs.1000 crores.
In its regulatory filing, TATA Motors said that its total income increased by almost Rs. 16,000 crores in the last year.
The usage of Indian-made cars stretches even to the government and security agencies. In Karnataka, most vehicles of the police force are Mahindra Bolero.
Chirag Shah, the owner of a Mahindra XUV700 in Bengaluru said, “This car had the highest New Car Assessment Programme (NCAP) safety ratings, best features, and is really good looking.”
He also said, “The safety, features, looks, and size provided by TATA and Mahindra cars in this price range are unmatchable.”
All the new Mahindra & Mahindra cars and TATA cars have a waiting period of approximately six-eight months, yet people are excited about purchasing these vehicles.
Ambrose, who is currently waiting for his XUV 700 that he ordered over a year ago said, “The quality of Mahindra & Mahindra cars is fantastic. Even if you have to wait a year for the car, its features, safety, and looks make it worth the wait.
The XUV700 is in high demand, and the waiting period for its delivery is almost one year
Naman Jain, an automobile engineer, and enthusiast said, “Mahindra & Mahindra and TATA are building their cars like tanks, with the best build quality.”
Naman added, “TATA and Mahindra and Mahindra have adapted German technology and European design in their cars and localized it here for the Indian market. The government is also supporting ‘Make-in-India’, and consumers have a patriotic feeling and know that these two brands provide the best price range.”
The Global New Car Assessment Programme (NCAP) rating promotes the safety assessment of new cars by adopting the United Nations (UN) motor vehicle safety standards.
Most Mahindra and TATA cars have a 5/5 rating – TATA Altroz, Mahindra Thar, Mahindra XUV 300, 500 & 700, TATA Nexon, and TATA Tiago.
Naman said, “Maruti Suzuki’s cars are very badly rated on NCAP, but most of the TATA and Mahindra cars have a minimum of 4/5 rating. These two brands also focus on both occupant’s safety and pedestrian safety, by changing the metal bumpers to fiber, so they do not get hurt much due to an accident.”
In terms of Electric Vehicles, there aren’t too many affordable options in the market except for the TATA Nexon and Tiago
However, despite the rise in demand, TATA and Mahindra are yet to dominate the Indian market completely. A report by Carwale says that in January 2023, the Indian brands TATA claimed the third position, and Mahindra &Mahindra stood at the fourth position in the number of cars sold. Maruti Suzuki and Hyundai stand first and second in their monthly sales, while brands like Honda, MG, Renault, Jeep, and Nissan have reported a drop in their sales.
