Monday, March 03, 2025
By Kamal Swami
Mahindra Is The Second Largest Car Maker In India, Beats Hyundai
The end of February 2025 has witnessed a dynamic shake-up in the Indian automotive industry. According to recent reports, the domestic car maker Mahindra & Mahindra (M&M) has surpassed Hyundai Motor India (HMIL) to become the second-largest carmaker in the domestic market.
M&M recorded domestic wholesales of 50,420 units in February, registering a 19% year-on-year (Y-o-Y) growth. Hyundai, on the other hand, witnessed a 4% Y-o-Y decline in domestic sales, with 47,727 units sold. However, combining the exports, the Indian arm of the Korean carmaker, Hyundai retained its second position overall, with total February sales (domestic and exports) reaching 58,727 units, compared to Mahindra’s 52,386 units. Tata Motors followed in the fourth position, reporting domestic sales of 46,435 units, reflecting a 9% Y-o-Y decline.
Surge In Demand For Mahindra’s SUV
The major key players behind Mahindra’s ascent in the domestic market are attributed to the strong demand for its SUVs. While competitors struggle to grow their business and offer discount to boost their sales, Mahindra continues to enjoy strong demand. The company’s latest electric SUVs—the XEV 9e and BE 6— recorded 30,179 bookings on the first day of availability. With popular models like the Thar Roxx and Scorpio N, Mahindra has consistently enjoyed double-digit monthly sales growth since last year. Between April 2024 and February 2025, the demand for Mahindra’s SUV increased up to 20% to reach 503,439 units. “This strong performance is a result of the continued positive momentum for our SUV portfolio,” said Veejay Nakra, President of the Automotive Division at M&M.
Hyundai Faces Challenges, Remains Optimistic
The main reason behind the poor performance by the Korean carmaker Hyundai has been due to limited new models launched in recent times. Currently the company is focusing on its first domestically built electric vehicle, developed on Creta’s platform, with its other top-selling SUVs, the Venue and Exter, facing tough competition in their respective segments. However, despite this, Hyundai India remains optimistic about future. In the words of Tarun Garg, Chief Operating Officer at HMIL, “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”.
Maruti Suzuki Continues to Dominate the Market, Whereas Toyota and Kia WitnessGrowth
Maruti Suzuki India Limited (MSIL) succeeded in retaining its dominant position in the passenger vehicle market. The company recorded domestic PV sales of 160,791 units in February, a slight increase from 160,271 units during the same month last year. However, its exports declined from 28,927 units in February 2024 to 25,021 units in February 2025. It should also be remembered that Maruti Suzuki crossed the 2 million total sales milestone within the first 11 months of FY2025.
Other major four wheeler manufacturers in the country also recorded change in their sales. Toyota Kirloskar Motor (TKM) recorded 28,414 unit sales in February 2025, recording a 13% Y-o-Y increase. Kia India also recorded an increase in its sales rising by 23.8% Y-o-Y to 25,026 units, up from 20,200 units in February 2024.
With the Indian car market expanding dynamically, Mahindra’s aggressive shift towards the SUV segment indicates its commitment of focusising on developing vheicles considering consumer preferences. This practice is developing fresh challenges for established players like Hyundai. The coming months will be crucial in determining whether this trend will continue or if Hyundai reclaims its position in the domestic market.
