The Indian passenger vehicle (PV) market has witnessed a significant reshuffle, with Mahindra & Mahindra (M&M) overtaking Hyundai Motor India (HMIL) to claim the second spot. This shift marks a historic change in the industry’s pecking order, as Hyundai had long maintained its position behind market leader Maruti Suzuki.
M&M’s strategic focus on SUVs and consistent model launches have propelled it ahead of the Korean automaker, signaling a new era in the Indian automotive landscape.
The latest vehicle shipment data highlights M&M’s rise to the No. 2 rank. Hyundai reported domestic auto sales of 47,727 units and exports of 11,000 units in February 2025, bringing its total sales to 58,727 units. This marked a decline from January's 65,603 total units. Additionally, Hyundai’s domestic sales dropped from 54,003 units in January to 47,727 units in February.
In contrast, Mahindra & Mahindra recorded an impressive 19% year-on-year growth in SUV sales for February 2025, reaching domestic sales of 50,420 units. This figure exceeded Hyundai’s domestic sales by 2,700 units, cementing M&M’s position as the second-largest automaker in India.
Mahindra’s success can be attributed to its aggressive product strategy and innovative approach. Unlike Hyundai, which has relied heavily on its bestselling Creta model, Mahindra has consistently introduced new SUVs catering to different customer segments.
Models such as the Thar ROXX, XUV500, and Scorpio N have broadened M&M’s portfolio, allowing it to tap into niche markets while also appealing to mass consumers. This multi-model strategy has strengthened Mahindra’s foothold in the competitive SUV market, giving it an edge over Hyundai’s relatively conservative approach to product launches.
Hyundai’s dominance in the mid-size SUV segment has primarily been driven by the Creta, which has remained a bestseller since its launch in 2015. However, its reliance on this single model has made it vulnerable to competition from brands like Mahindra, which offer a wider range of SUV options with frequent updates and refreshed designs.
The shift in rankings comes amidst a larger transformation in India’s passenger vehicle market. Over the past five years, SUVs have seen a dramatic surge in demand, eclipsing hatchbacks and sedans.
Between 2020 and 2025, the SUV market share in India grew from 32% to nearly 60%, fueled by consumer preference for versatile vehicles with higher ground clearance, premium features, and bold styling. Models like the Mahindra Scorpio N, Hyundai Creta, and Tata Harrier have contributed significantly to this trend.
While Hyundai has benefited from the SUV boom, Mahindra has gained an even stronger advantage as it focuses solely on utility vehicles. Unlike Hyundai, Mahindra does not produce hatchbacks or sedans, allowing it to dedicate its resources entirely to the growing SUV segment.
Despite losing its No. 2 position, Hyundai remains optimistic about its future performance in India. Tarun Garg, COO of Hyundai Motor India, highlighted that the company is focusing on tax reforms, improved liquidity, and new model introductions to regain its position.
“Despite geopolitical challenges, we remain optimistic that the proposed tax reforms in the Union Budget 2025 and improved liquidity will provide the much-needed demand boost to the market,” Garg stated. Hyundai is also expected to refresh its existing lineup and introduce new models to strengthen its domestic sales.
Hyundai continues to maintain a strong presence in global markets through exports. In February 2025, Hyundai exported 11,000 units, marking a 6.8% year-on-year increase. The company is strategically leveraging India as a major export hub for its parent brand, Hyundai Motor Company.
Meanwhile, Mahindra reported an impressive 99% year-on-year increase in exports, shipping 3,061 units overseas in February 2025. While its total export numbers remain smaller than Hyundai’s, the sharp growth indicates Mahindra’s growing international ambitions.
While the Indian automotive industry has seen strong demand over the past three years, experts believe that sales growth may start moderating in the near future. Rising fuel prices, economic uncertainties, and evolving government policies could impact the pace of new vehicle purchases.
Despite these potential headwinds, Mahindra’s rise to the No. 2 position reflects a broader trend—consumers are increasingly favoring SUVs over traditional hatchbacks and sedans. As the market continues to evolve, automakers will need to adapt their strategies to remain competitive in India’s dynamic automotive landscape.