Mahindra Cements Second Position in Indian Car Market as Tata Motors and Hyundai Sales Lag
Mahindra and Mahindra Ltd Edges Past Hyundai Motor India Ltd to Secure Second Position
Mahindra and Mahindra Ltd sold 43,691 passenger vehicles in May, surpassing Hyundai Motor India Ltd, which sold 38,030 cars. This marks the third time in the first five months of the calendar year that Mahindra has emerged as the second-largest car maker in India.
Tata Motors Ltd Records 12.7% Decline in Monthly Sales
Tata Motors Ltd’s monthly sales recorded a 12.7% decline to 38,535, as both Hyundai and Tata continued to struggle against a surge in Mahindra’s sport utility vehicle (SUV) sales. Mahindra’s wholesale dispatches during May were 52,431, a surge of 21% compared to the year-ago period.
Market Trends and Future Outlook
Analysts say that the overall growth environment in the passenger vehicle market remains weak. The Society of Indian Automobile Manufacturers estimates a 1-2% growth in FY26. However, car makers appear divided about the state of the passenger vehicle market.
- Mahindra Group managing director and chief executive Anish Shah expects the blip in urban demand to pass shortly.
- Maruti Suzuki chairman R.C. Bhargava highlighted that the state of growth in the car market is worrying, particularly in the small car segment.
Key Players’ Strategies and Performance
Hyundai Motor India is planning to launch 26 models in the country’s car market by FY2030, including 20 internal combustion engine vehicles and six EVs. Tata Motors is also planning to win back growth through a push in the hatchback segment and new EV launches.
- Mahindra and Mahindra’s CEO, Automotive Division, Nalinikanth Gollagunta, expressed satisfaction with the company’s performance, citing continued demand for their products.
- Tata Motors’ chief commercial officer, Vivek Srivatsa, noted that much of the degrowth in the market has happened in cheaper hatchbacks, with consumers expecting more from their cars.
Market Share and Future Developments
Mahindra and Mahindra’s share price has declined by 3.6% so far in 2025, against a 2.5% surge in Hyundai’s shares. The company’s strong claim to the second spot on the car sales podium is driven by its SUV-led portfolio.
The expectation of growth in the passenger vehicle market during the financial year is tepid. However, Mahindra and Mahindra remains optimistic about the market, with a positive sentiment and strong interest from consumers.
