Just before he retired last year Ratan Tata may have said that losing out to Mahindra and Mahindra (M&M) is something for Tata Motors to be ashamed of, but M&M should not be resting on those laurels. CNBC-TV18 is picking up that M&M has taken a hit where it hurts the most. Renault Duster is eating into the sales of its popular SUV Scorpio, reports CNBC-TV18’s Sunanda Jayaseelan.

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Sales of the Scorpio has not just been stagnating, but also slipping. It has slipped to 50,168 units in FY13 versus 50,844 units in FY12. It has also slipped on a month-on-month basis especially when you compare it with the sales of the Duster.

The Duster sold 5,590 units in February, 6,300 units in March and 5,372 units in April versus the 4,400 odd units that the Scorpio has sold in that same period.

Analysts tell us it is a combination of factors including attractive pricing and also a lot of first-time buyers moving towards the Special Utility Vehicle (SUV) segment and especially interested in an international brand name.

Renault tells us on its part that it is hoping to close the year out with double digit growth.

Sumit Sawhney, ED-Sales and Marketing, Renault India says, “This year we see Renault getting from strong to stronger and we expect to cross more than double the volumes.”

However, the good news which is coming in for M&M is that it has seen increase as far as the XUV 500 sales are concerned. The company sold 45,485 units in FY13 and saw strong sales in just a few months after the product was launched.

The real concern right now for both M&M and Renault will be the launch of the Ford EcoSport which is expected in Mid-June this year.

All eyes are going to be on the changes in the SUV space.