In a significant development within India’s automotive industry, Mahindra & Mahindra (M&M) has overtaken Hyundai Motor India to become the country’s second-largest automaker, trailing only Maruti Suzuki. This milestone, achieved in February 2025, underscores M&M’s strategic focus on the burgeoning SUV segment and its ability to adapt to evolving consumer preferences.
Mahindra’s Ascendancy in the Indian Market
Mahindra reported domestic passenger vehicle sales of 50,420 units in February 2025, marking a 19% increase compared to the same period the previous year. This surge propelled M&M past Hyundai, which recorded domestic sales of 47,727 units, a 5% decline year-on-year. This shift is particularly noteworthy as it marks the first time M&M has secured the second spot in India’s passenger vehicle market, a position long held by Hyundai.
SUVs: The Driving Force Behind Mahindra’s Growth
The cornerstone of Mahindra’s recent success lies in its robust SUV lineup, which includes popular models such as the Thar ROXX, XUV700, Scorpio-N, and XUV 3X0. These vehicles have resonated with Indian consumers, who are increasingly gravitating towards SUVs for their versatility, higher ground clearance, and commanding road presence. The Thar ROXX, for instance, has been lauded for its off-road capabilities and modern design, appealing to both adventure enthusiasts and urban drivers.
Veejay Nakra, President of the Automotive Division at Mahindra, attributes this strong performance to “continued positive momentum” for the company’s SUV portfolio. The company’s strategic focus on SUVs aligns with broader market trends, as SUVs have come to dominate India’s passenger vehicle sales, accounting for over 50% of the market.
Hyundai’s Position and Response
Hyundai, while experiencing a dip in February sales, remains a formidable player in the Indian automotive landscape. The company’s lineup, featuring models like the Creta, Venue, and Exter, has historically performed well. However, increased competition from Mahindra’s diverse SUV offerings has impacted Hyundai’s market share. Despite these challenges, Hyundai maintains an optimistic outlook, anticipating that proposed tax reforms and improved liquidity will rejuvenate demand in the coming months.
Revenue Market Share: Mahindra’s Financial Edge
Beyond unit sales, Mahindra has also outpaced Hyundai in terms of revenue market share. From April 2024 to January 2025, M&M’s revenue stood at nearly ₹71,000 crore, surpassing Hyundai’s ₹58,653 crore. This financial ascendancy is attributed to the higher price points and profitability of Mahindra’s SUV models, reflecting the company’s successful positioning in the premium SUV segment.
Strategic Product Development and Market Adaptation
Mahindra’s rise can be credited to its agile product development strategy and keen understanding of market dynamics. The company has consistently refreshed its SUV lineup, introducing models that cater to diverse consumer preferences—from rugged, adventure-ready vehicles to urban-friendly SUVs equipped with modern amenities. This approach has allowed Mahindra to capture a broad customer base and adapt swiftly to shifting market trends.
In contrast, Hyundai’s reliance on a narrower SUV portfolio, primarily centered around the Creta, has limited its ability to compete across various SUV sub-segments. While the Creta has been a strong performer, the lack of a diversified SUV lineup has made it challenging for Hyundai to match Mahindra’s growth in this category.
The Broader Market Context
The Indian automotive industry has been undergoing a transformation, with SUVs emerging as the preferred choice among consumers. This shift is driven by factors such as improved road infrastructure, changing lifestyle aspirations, and the perceived safety and status associated with SUVs. As a result, manufacturers with a strong SUV portfolio, like Mahindra, have been able to capitalize on this trend effectively.
Maruti Suzuki, the market leader, has also recognized this shift, with its senior executive officer (marketing and sales), Partho Banerjee, noting strong demand for SUVs in the domestic market. The company’s ability to adapt to these changing preferences will be crucial in maintaining its leadership position.
Future Outlook
Mahindra’s ascent to the second spot in India’s automotive market is a testament to its strategic focus on SUVs and its ability to innovate in response to consumer demands. The company’s commitment to expanding its SUV lineup and enhancing product features positions it well for sustained growth.
Hyundai, facing increased competition, may need to reassess its product strategy to regain its footing. Diversifying its SUV offerings and introducing models that cater to emerging consumer preferences could be pivotal in reversing its recent sales decline.
Overall, the dynamic shifts in India’s automotive industry highlight the importance of agility, consumer-centric product development, and strategic market positioning. As manufacturers navigate these changes, those who can anticipate and respond to evolving trends are likely to emerge as leaders in this competitive landscape.