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Mahindra Beats Hyundai to Become India's 2nd Largest Carmaker

The Indian automobile industry is witnessing a major shift in rankings, with Mahindra & Mahindra surpassing Hyundai Motor India to become the second-largest car manufacturer in the country. This remarkable feat comes as Mahindra reported a massive 19% year-on-year (YoY) growth in February 2025, selling 50,420 units in the domestic market.

Mahindra’s Growth in February 2025

  • Total sales: 52,386 units (including exports)
  • Domestic sales: 50,420 units (19% YoY growth)
  • Commercial Vehicles (CV) sales: 23,826 units
  • Exports: 1,966 units

Mahindra’s success is largely attributed to its strong SUV lineup, increasing demand for utility vehicles (UVs), and growing brand loyalty. The company has been consistently expanding its market share, thanks to models like the Scorpio-N, XUV700, Thar, and Bolero.

According to Veejay Nakra, President, Automotive Division, M&M Ltd., "In February, we clocked SUV sales of 50,420 units, a growth of 19%, and total vehicle sales of 83,702 units, marking a 15% increase. This strong performance is a result of continued positive momentum for our SUV portfolio."

Also Read: Mahindra Scorpio-N Carbon Edition Launched at ₹19.19 Lakh

Hyundai India’s Sales Performance in February 2025

While Hyundai India managed to maintain its export growth, its domestic sales took a hit. The company registered a 2.93% YoY drop in cumulative sales compared to 60,501 units in February 2024. Hyundai attributes this decline to geopolitical challenges and market fluctuations.

Despite this, the company remains optimistic, expecting the latest tax reforms to boost sales in the coming months. However, Hyundai’s sales have steadily declined over the past three months:

  • December 2024: 67,615 units
  • January 2025: 65,603 units
  • February 2025: 58,727 units

How Mahindra Overtook Hyundai

  1. Dominance in the SUV Segment
    • Mahindra’s SUVs, including Scorpio-N, XUV700, Thar, and Bolero, have seen overwhelming demand.
    • Consumers prefer Mahindra’s rugged SUVs for their performance, durability, and road presence.
  2. Consistent Domestic Sales Growth
    • While Hyundai saw a drop in domestic sales, Mahindra continued its upward trajectory.
    • Mahindra's localized manufacturing and strong distribution network helped drive sales.
  3. Hyundai’s Struggles with Market Challenges
    • Hyundai faced geopolitical uncertainties and market fluctuations affecting its growth.
    • The brand is heavily reliant on urban markets, where competition is intense.
  4. Mahindra’s Strong Brand Image
    • Mahindra has built a loyal customer base in urban and rural India.
    • Its rugged and adventure-ready vehicles cater to diverse customer needs.

What’s Next for Mahindra and Hyundai?

  • Mahindra plans to expand its portfolio with new SUV launches and electric vehicles (EVs).
  • Hyundai aims to recover lost ground by focusing on new product launches, tax benefits, and export growth.
  • The Indian automobile industry remains highly competitive, with Maruti Suzuki leading the market while Mahindra and Hyundai battle for the second spot.

With Mahindra beating Hyundai in February 2025, the competition in the Indian auto industry is heating up. As both brands gear up for future challenges, SUV dominance, innovation, and customer preferences will shape the rankings in the coming months.

Conclusion
Mahindra’s rise to become India’s second-largest carmaker marks a significant shift in the country’s automobile industry. Its strong SUV portfolio, steady domestic growth, and customer-centric approach have propelled it ahead of Hyundai. Meanwhile, Hyundai faces market challenges and declining domestic sales, but remains a formidable player with its strong export network and upcoming product lineup.

Also Read: Kia EV4 Debuts in Both Sedan and Hatchback Versions

 

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