Mahindra & Mahindra has achieved a historic milestone by overtaking Hyundai to claim the No. 2 position in India’s passenger vehicle market, ending the Korean automaker’s 25-year dominance. This strategic shift marks the first time Mahindra has reached second place in domestic sales.
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SUV Strategy Powers Mahindra’s Rise
The transformation stems from Mahindra’s aggressive SUV-focused strategy and expanding product portfolio. With models like Thar, Scorpio N, and XUV series driving growth, Mahindra capitalized on India’s growing preference for utility vehicles over traditional sedans.
Market Position Analysis
| Automaker | Current Status | Key Performance |
|---|---|---|
| Maruti Suzuki | #1 (Market Leader) | Slight market share decline |
| Mahindra | #2 (New Position) | 20.3% growth in H1 2025 |
| Hyundai | #3 (Former #2) | 4% YoY decline in Feb 2025 |
| Tata Motors | #4 | Strong SUV portfolio |
| Market Trend | SUV Dominance | Sedan segment declining |
February 2025: The Turning Point
February 2025 marked the decisive moment when Mahindra surpassed Hyundai in domestic sales. While Hyundai sold 47,727 passenger vehicles with a 4% YoY decline, Mahindra demonstrated robust growth driven by its SUV-heavy lineup.
First Half 2025 Performance
Mahindra’s exceptional 20.3% growth in the first half of 2025 solidified its position above both Hyundai and Tata Motors. The Thar model alone contributed with an impressive 60.1% growth, becoming a key growth driver.
Strategic Product Mix
Mahindra’s success reflects its strategic focus on utility vehicles, aligning perfectly with changing consumer preferences. Models like Scorpio N, XUV700, and the iconic Thar resonated strongly with Indian buyers seeking adventure-ready, feature-rich vehicles.
Hyundai’s Response Strategy
Despite losing the No. 2 position, Hyundai is expected to introduce new models and expand its electric vehicle lineup to regain competitive advantage. The company’s established dealership network and brand loyalty provide a strong foundation for recovery.
Market Dynamics Shift
This historic change highlights India’s evolving automotive landscape, where SUV manufacturers like Mahindra are gaining prominence over traditional sedan-focused brands. The shift reflects broader consumer trends toward higher-riding, versatile vehicles.
Commercial Vehicle Strength
Beyond passenger vehicles, Mahindra’s improving commercial vehicle traction and strong export momentum contributed to its overall market position strengthening across multiple segments.
The achievement represents decades of strategic planning and product development, positioning Mahindra as a formidable challenger to established market dynamics.
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FAQs
How long was Hyundai India’s No. 2 automaker before Mahindra overtook it?
Hyundai held the second position for 25 consecutive years until Mahindra’s rise.
What drove Mahindra’s success in overtaking Hyundai?
Strong SUV portfolio led by Thar, Scorpio N, and strategic focus on utility vehicles.
