Whalesbook
M&M Set to Dethrone Hyundai from Second Spot in Indian Auto Market
Mahindra & Mahindra is on track to overtake Hyundai Motor India, a position the South Korean automaker has held for years, to claim the second spot in India's highly competitive passenger vehicle market by the end of 2025. This significant market shift could see Hyundai Motor India slide to fourth place, behind local rivals Mahindra & Mahindra and Tata Motors.
This projected change is notable as it would be the first time Hyundai Motor India loses its second position since vehicle registration data became publicly available on the government’s Vahan portal in January 2019. The registration numbers for this ranking include electric vehicle (EV) models.
Sales Projections and Market Dynamics
Industry estimates project Mahindra & Mahindra will close 2025 with approximately 557,524 vehicle registrations. This places it ahead of Hyundai Motor India's estimated 520,834 units. Tata Motors is anticipated to secure the third position with around 541,365 registrations. This scenario would mark the first calendar year where Mahindra & Mahindra outsells both Tata Motors and Hyundai.
An industry analyst commented that this shift reflects the "vibrancy and growing competitive intensity of the world’s third-largest passenger vehicle market." Car sales in India are also forecasted to reach 4.6 million units by the end of 2025, representing a 10.5% year-on-year increase, surpassing earlier expectations.
Factors Driving Mahindra & Mahindra's Ascent
Mahindra & Mahindra's rise to the second position from fourth place last year is largely attributed to its strategic product launches over the past four years. The company has introduced multiple models across petrol, diesel, and electric powertrains, focusing on the fast-growing sport utility vehicle (SUV) segment. In 2025 alone, it introduced new models such as the five-door Thar Roxx and the XUV 3XO sub-compact SUV, alongside electric SUVs like the BE 6 and XEV 9e.
Furthermore, timely facelifts and refreshes of its legacy models, including the popular Bolero and Scorpio, have sustained monthly sales volumes. Data from the Vahan portal, released by the Federation of Automobile Dealers Association (FADA), indicates that Mahindra & Mahindra outsold Hyundai in registrations for 10 out of the 12 months of 2025.
Analysts point to Mahindra & Mahindra’s sharper focus on design, competitive pricing, and premium features as key drivers of its consistent performance. "Unlike the past, they are focused and don’t want to be everywhere," noted one brokerage analyst.
Hyundai's Challenges and Future Strategy
In contrast, Hyundai Motor India has experienced a relatively muted product launch cycle. The Exter micro-SUV, launched in July 2023, was its last entirely new nameplate. Analysts suggest the company continues to rely heavily on the sustained popularity of its Creta model.
Acknowledging the intensifying competition, Hyundai announced plans earlier this year to launch 26 new models in India by 2029–30. The company aims to capture a 15% market share by 2029–30, up from its current estimated 13% in 2025, signaling a strategic shift towards prioritizing profitability over sheer volume.
Market Outlook
Vinkesh Gulati, director at United Automobiles and former president of FADA, expects overall vehicle sales to increase by 5–7% in 2026. He also anticipates Maruti Suzuki, the market leader, to outperform the industry.
Impact
This competitive reshuffling is expected to intensify innovation and marketing efforts within the Indian automotive sector. Consumers are likely to benefit from a wider array of choices and potentially more competitive pricing. Investors will closely monitor the performance of these manufacturers as they navigate the dynamic market landscape.
Impact rating: 7/10
Difficult Terms Explained
- Passenger Vehicle (PV): Vehicles designed for transporting passengers, including cars, SUVs, and vans.
- Sport Utility Vehicle (SUV): A type of car that combines elements of road-going passenger cars with features from off-road vehicles, such as raised ground clearance and four-wheel drive.
- Powertrain: The system in a vehicle that generates power and delivers it to the road, typically including the engine, transmission, and drivetrain.
- Facelift: A mid-cycle update to a vehicle model, usually involving cosmetic changes to the exterior and interior, and sometimes minor mechanical updates.
- Nameplate: A specific model designation used by a car manufacturer (e.g., Creta, Bolero).
- Market Share: The proportion of total sales in a specific market that a company or product has achieved.