In a notable shift within India’s automotive industry, Mahindra & Mahindra (M&M) surpassed Hyundai Motor India in February 2025 to become the country’s second-largest automaker by domestic sales. This development underscores M&M’s strategic focus on the burgeoning SUV segment and highlights the evolving dynamics of the Indian passenger vehicle market.
Mahindra’s Surge in Domestic Sales
M&M reported domestic sales of 50,420 units in February 2025, marking a substantial 19% year-on-year growth compared to 42,401 units in the same month last year. This surge is primarily attributed to the company’s strong SUV portfolio, which includes popular models like the Thar Roxx, XUV700, and Scorpio N. These vehicles have resonated well with consumers, leading to robust demand and contributing significantly to M&M’s sales performance.
Veejay Nakra, President of the Automotive Division at M&M, commented on this achievement, stating, “This strong performance is a result of the continued positive momentum for our SUV portfolio.” newindianexpress.com
Hyundai’s Decline in Domestic Sales
In contrast, Hyundai Motor India reported domestic sales of 47,727 units in February 2025, reflecting a 5% decrease from 50,201 units in February 2024. Despite this decline in domestic sales, Hyundai’s export numbers showed a slight improvement, with 11,000 units exported in February 2025 compared to 10,300 units in the same month last year. timesofindia.indiatimes.com
Tarun Garg, Chief Operating Officer at HMIL, addressed the company’s performance, stating, “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.”
Industry-Wide Trends
The Indian passenger vehicle market has been experiencing a significant shift towards SUVs, with their market share increasing from 32% in 2020 to nearly 60% in 2025. This trend is driven by changing consumer preferences for vehicles offering versatility, higher ground clearance, and bold styling suitable for India’s diverse terrains and improving road infrastructure.
Models like the Mahindra Scorpio N, Hyundai Creta, and Tata Harrier have fueled this boom, with sales jumping from 1.002 million units in 2021 to over 2 million in 2024. Meanwhile, hatchbacks and sedans have seen their combined share dwindle below 40%, as affordability takes a backseat to aspirational buying. Rising disposable incomes, a growing middle class, and aggressive SUV launches by automakers like Mahindra and Hyundai have cemented this trend, relegating compact cars to a shrinking niche. autocarpro.in
Maruti Suzuki’s Continued Dominance
Despite the reshuffling among other automakers, Maruti Suzuki India Limited (MSIL) maintained its leadership position in the passenger vehicle market. The company reported domestic sales of 160,791 units in February 2025, a slight increase from 160,271 units in the same month last year. MSIL’s dominance is attributed to its diverse product lineup and strong brand recognition among Indian consumers. newindianexpress.com
Future Outlook
M&M’s ascent to the second spot in the domestic market reflects its strategic focus on the SUV segment and its ability to cater to evolving consumer preferences. The company’s commitment to innovation and understanding of market dynamics have positioned it well for sustained growth.
Hyundai’s recent challenges in domestic sales highlight the importance of adapting to market trends and consumer demands. The company’s optimism about future tax reforms and improved liquidity suggests a strategic approach to regain its footing in the competitive Indian automotive landscape.
The Indian automotive industry’s shift towards SUVs indicates a broader change in consumer behavior, with a growing preference for vehicles that offer versatility and cater to diverse driving conditions. Manufacturers that align their product strategies with these preferences are likely to capture a larger share of the market in the coming years.
In conclusion, Mahindra & Mahindra’s achievement in February 2025 signifies a pivotal moment in India’s automotive industry, reflecting both the company’s strategic direction and the evolving preferences of Indian consumers. As the market continues to evolve, automakers will need to stay attuned to these shifts to maintain and enhance their market positions.
