Passenger vehicle sales may be struggling to rise beyond 2.6 million units per annum for the last four fiscal years, but Maruti Suzuki India Ltd has consistently increased its revenue market share, data from Antique Stock Broking Ltd show. From less than 26% in 2011-12, its revenue or value share increased to 30.8% in the last fiscal year.

On the other hand, Tata Motors Ltd and Mahindra and Mahindra Ltd ceded ground, especially in the previous fiscal year. Tata Motors’s value share fell from 7.2% in 2013-14 to 5.7% in 2014-15. Even as passenger vehicle industry sales stagnated, Maruti managed to grow its domestic sales 11% in 2014-15. But the point to note is that the company expanded its revenue share in the earlier two years also, when its domestic sales grew only marginally. Moreover, between 2011-12 and 2013-14, the company’s revenues increased almost 23%.

Helping the company is the premiumization of cars. Rising aspirations are driving demand for cars that offer better features, though they are priced higher than entry-level models. The share of entry-level models like M800, Alto, A-Star and WagonR in Maruti’s domestic sales volume has fallen from 49% in 2011-12 to 36%. The share of better-priced, compact, mid-size cars and compact utility vehicles expanded during the period.

Tracking the shift in consumer preferences, companies are launching more compact cars with better futures than entry-level models. While that will keep the revenue market shares dynamic, maybe it is time to look beyond plain volumes, as volumes may be muted but realizations can be better. “We believe the concept of value share is gradually becoming important over volume share as bulk of the new, successful launches in market are in the 0.75 m (million) and above category, leaving behind the legacy high volume, lower priced smaller hatchback segment," said Antique Stock Broking in a note.