Tata Motors is earning more money per car than Maruti Suzuki

Nov 9, 2021 1 min read
Tata Motors is earning more money per car than Maruti Suzuki

According to a report on Wednesday, Tata Motors has surpassed Maruti Suzuki in profit per car for the first time in a decade. During the second quarter of the fiscal year, Tata Motors reported an operational profit totalling ₹ 45,810. As of September 30, Tata Motors had overtaken Maruti Suzuki's per-car profitability for the first time in a decade.

Tata Motors' operating margins rose 5.2 percent in Q2FY22, while Maruti Suzuki's fell 4.2 percent.

In the rivalry between Tata Motors and Maruti Suzuki, supply problems of semiconductor chips has also been a factor. Although research and development (R&D) efforts have resulted in the re-engineering of products that use standard chipsets, Tata Motors has been operating at full capacity.

The shortage of chipsets will last until 2023, which is why Maruti Suzuki has begun to increase the supply of chipsets. Maruti Suzuki's production was cut by more than 116,000 units in September due to a lack of supplies.

Tata Motors' September sales volume increased by 53% to 84,000 units, while Maruti's sales decreased by 1.2 percent. As of September 2021, Tata had an 11.3 percent market share. Since the beginning of the year, its shares have risen by nearly 161%, whereas Maruti's have only increased by 0.96 percent.

Compared to Maruti Suzuki's position on electric vehicles, Tata has a much higher level of investment, which is a significant difference. Compared to September of last year, Tata Motors sold 1,078 electric cars to 308 in September last year.

Great! Next, complete checkout for full access to CarInfo.
Welcome back! You've successfully signed in.
You've successfully subscribed to CarInfo.
Success! Your account is fully activated, you now have access to all content.
Success! Your billing info has been updated.
Your billing was not updated.