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The recently released auto numbers continue to show a declining trend for Toyota's Corolla, with sales registering a seven percent month-on-month fall in May. On the other hand, the other two passenger cars in the 1,300cc and above category, Honda and Suzuki, continued their upward spin, posting 16 percent and 20 percent growth in sales, respectively.
Overall, there has been almost four percent month-on-month increase in sales of 1,300cc-and-above passenger car category for the industry. Honda's sales have improved for both its models, while Suzuki has benefited from the higher sales of Swift.
On a year-on-year basis, however, sales have deteriorated for Toyota and Suzuki by three percent and 18 percent, respectively, while Honda sales have posted an 11 percent increase. More importantly, the market share, based on monthly sales numbers, is beginning to take a different picture, given that Toyota has been the dominant player in the category.
Honda's sales have started rising steadily, capturing significant market share, which is now at par with that of Toyota. But, the convergence was not just due to higher sales of the former; there has been a corresponding decline in Toyotas share over the past couple of months. Having fell down to seven percent in January, Suzuki's share has also started picking up and has now reached up to 10 percent.
Market analysts suggest that auto sales usually take a downturn in the month of May in anticipation of the budget. In case of a budgetary decision that might lead to higher prices, consumers still have the opportunity to make purchases in the month of June. However, sales have actually picked up for two of the three market players.
Does that really put Toyota at risk?
Not really, say the analysts and company representatives alike. Customers may have held back on purchases in anticipation of the launch of Corolla's new model this July. Further, if the increasing trend in auto-loan off-take-which has shown a remarkable 260 percent year-on-year increase in 10M FY14-continues, whatever is 'new' in the market will surely capture the interest of customers.
Nonetheless, Honda is still perceived as a strong competitor to Toyota. Honda itself gradually gained a better position in the market with the launch of new models over the last few years, while Toyota's last model came out back in 2008-09. However, given the generally-held view that it enjoys higher resale value compared to Honda; Toyota continues to hold the market attention and is likely regain its dominant position with the new model.

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