Mahindra Overtakes Hyundai, Tata to Claim 2nd Spot in 2025 Sales

Mahindra & Mahindra has made history in the Indian automobile industry by securing the second spot in annual passenger vehicle sales for 2025. The Mumbai based SUV specialist surpassed long standing competitors Tata Motors and Hyundai Motor India marking a significant achievement for a company that primarily focuses on utility vehicles

According to the government’s Vahan portal registration data up to December 25, 2025, Mahindra sold 5.81 lakh units, compared to 5.52 lakh units by Tata Motors and 5.50 lakh units by Hyundai. This milestone reflects the growing popularity of Mahindra’s SUVs and electric vehicles proving that a strong product strategy can challenge diversified car portfolios dominated by hatchbacks and sedans

Strong Product Strategy Drives Growth

Mahindra’s rise to the number two position was not by chance. The company implemented a well planned product strategy that gained momentum in early 2025. Key combustion engine models such as the Scorpio N, Scorpio Classic and Thar Roxx provided a solid sales base

• These models continued to appeal to traditional SUV buyers, maintaining steady sales volumes
• Mahindra’s foray into premium electric SUVs contributed significantly to overall growth

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Electric SUVs Fuel Sales Momentum

Mahindra’s electric vehicles, the BE 6e and XEV 9e, have proven to be more than niche offerings. Launched in early 2025, these models have collectively sold over 36,000 units, capturing 17 percent of India’s electric passenger vehicle market

• The BE 6e and XEV 9e have helped Mahindra validate its dedicated electric architecture, INGLO, showcasing the company’s ability to offer premium electric SUVs in a competitive, price-sensitive market
• Combined sales of these electric models accounted for 30,000 units in just seven months, reflecting growing consumer confidence in Mahindra’s electric offerings

Upcoming Electric and Combustion SUVs in 2026

Mahindra is continuing its aggressive expansion into the SUV market with new launches planned for 2026

• In November 2025 Mahindra unveiled the XEV 9S, a flagship 7 seater electric SUV targeting the luxury family segment. It comes with a starting price of Rs 19.95 lakh, 59-79 kWh battery options, and a triple-screen dashboard, positioning it as a premium offering in India’s EV space
• The company is also preparing a major refresh of its combustion flagship, the XUV700, rebranded as the XUV 7XO, scheduled for global debut on January 5, 2026. The facelift features C-shaped LED DRLs and a revamped triple-screen interior, aligning its design with Mahindra’s electric models

Tata Motors’ Performance and EV Leadership

Despite finishing closely behind Mahindra with 5.52 lakh units Tata Motors remains a key player in India’s EV market

• Tata continues to lead in electric vehicle sales, holding a 38 percent market share
• Its internal combustion models, however, were unable to match Mahindra’s growth, despite late 2025 updates to the Curvv and Nexon range

Hyundai Faces Challenges in Volume Sales

Hyundai, traditionally a strong volume player, slipped to fourth place due to intense competition from Mahindra

• Popular models such as the Creta and Venue faced strong challenges from Mahindra’s expanding SUV portfolio
• The XUV 3XO alone added over 10,000 incremental units monthly, directly impacting Hyundai’s overall sales

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Outlook for Mahindra in 2026

With the new year approaching, Mahindra enters 2026 with strong momentum.

• The company has a robust order book for the Thar Roxx and stable supplies for electric SUVs
• Upcoming launches, including the XUV 7XO and Scorpio-N facelift, are expected to further strengthen Mahindra’s market position
• The main challenge in 2026 will be to maintain this position as Tata prepares counter-offensives with models like the Sierra.EV and Punch Facelift

Mahindra’s strategic mix of combustion and electric SUVs, combined with strong consumer acceptance, has allowed it to surpass industry heavyweights Hyundai and Tata Motors, earning the title of India’s Second Largest Carmaker by volume in 2025