Mahindra Surpasses Hyundai: India’s New No. 2 Car Manufacturer in February 2025
5 Mar 2025
4 min read
The Indian automobile industry witnessed a major reshuffle in February 2025, as Mahindra & Mahindra (M&M) overtook Hyundai Motor India (HMIL) to become the country’s second-largest passenger vehicle manufacturer. This achievement marks a crucial milestone for Mahindra, reflecting its consistent growth in the SUV segment and increasing consumer preference for its models.
According to monthly wholesales data from original equipment manufacturers (OEMs), Mahindra recorded domestic sales of 50,420 units, marking a 19% year-on-year (YoY) growth. In contrast, Hyundai’s domestic sales fell by 4% YoY to 47,727 units. However, when including exports, Hyundai retained its second position overall, with total sales (domestic + exports) at 58,727 units, compared to Mahindra’s 52,386 units.
The Factors Behind Mahindra’s Growth
This dominance has helped Mahindra rise in the Indian automotive sector, particularly in the SUV market. The demand for popular models like Scorpio N, Thar Roxx, and XUV700 has been quite impressive and has only helped Mahindra fortify its market standing. Also, the company has rapidly entered the electric SUV space, launching models like the XEV 9e and BE 6 — which got 30,179 bookings on the first day.
Another major factor behind Mahindra's success is its strategic emphasis on quality, service history, and customer interaction. The company has an edge over the competitors as the brand offers tough, loaded SUVs at reasonable prices.
Hyundai’s Declining Domestic Sales
Although Hyundai is still a major force in the Indian market today, its domestic sales have declined by 4% YoY, which suggests that the company needs a new strategy. This has been attributed to geopolitical challenges and tough competition in the SUV segment. However, its exports increased by 6.8% YoY to 11,000 units, demonstrating the company's increasing global presence.
Hyundai's domestic sales are expected to get a boost from its upcoming Creta-based electric vehicle. But its best-selling SUVs, Venue and Exter, are coming up against some stiff competition from Mahindra, whose portfolio is growing fast.
Check: Bought a Used Car Without Service History?
Industry-Wide Performance in February 2025
Maruti Suzuki Remains the Market Leader
Although Mahindra took the lead from Hyundai in domestic sales, Maruti Suzuki India Limited (MSIL) continues to dominate the Indian passenger vehicle (PV) market. Domestic sales were reported at 160,791, up by a marginal 0.2 percent from 160,271 in February 2024. However, exports dropped to 25,021 from 28,927 units last year.
Tata Motors and Other Key Players
- Tata Motors came in at fourth place with domestic sales of 46,435 units, a 9% YoY decline.
- Toyota Kirloskar Motor (TKM) sold 28,414 units, up by 13% YoY.
- Kia India grew by 23.8% YoY, and total sales jumped to 25,026 from 20,200 in February 2024.
The Role of SUVs in Mahindra’s Success
Mahindra's rise stems from the continuing demand for SUVs in India. The company has consistently recorded double-digit growth in monthly sales even as the overall passenger vehicle industry saw a modest 4.3 percent growth last year.
Between April 2024 and February 2025, Mahindra's domestic SUV sales rose by 20%, reaching the astounding number of 503,439 units. The great responses to the Mahindra Thar Roxx and Scorpio N highlight the ability of Mahindra to identify and respond to market trends.
Also Read: How to Instantly Get Your Car’s Service History with CarInfo: A Complete Guide
Hyundai’s Strategy for a Comeback
Despite the troubles in the domestic market, Hyundai has reasons to be cheerful. The company is pinning its hopes on the Union Budget 2025 tax reforms and better liquidity to boost sales. Tarun Garg, COO of Hyundai Motor India, said:
"Despite geopolitical challenges, we remain optimistic that the proposed tax reforms and improved liquidity will provide the much-needed demand boost to the market."
Additionally, Hyundai is expected to introduce new models and expand its electric vehicle lineup to stay competitive in the Indian market.
Conclusion: What Lies Ahead?
This is a major shift in India’s automotive industry as Mahindra has risen to the second position in the domestic market for the first time ever. The company still dominates in SUVs and has a growing electric vehicle portfolio that is helping it. At the same time, Hyundai's domestic sales decline requires changes in strategy, e.g., new model launches and more aggressive pricing.
As the Indian automobile industry moves forward, competition is anticipated to grow stronger among the top players. Today, Maruti Suzuki continues to lead, while Toyota and Kia are rapidly growing, so the future of India's automotive sector is clearly competitive.
As of now, Mahindra has taken the top spot in domestic sales. Thus, it is recommended that car buyers check the service history of the car they plan to buy. Hence, it is advised that vehicle owners should also keep a regular check challan status to avoid penalties and for hassle-free driving.
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