Mahindra & Mahindra Makes History: Overtakes Hyundai to Become India’s 2nd Largest Carmaker

In a groundbreaking development, Mahindra & Mahindra has surpassed Hyundai Motors to become India’s second-largest carmaker for the first time in February 2025 ¹. This achievement marks a significant milestone in the Indian automotive industry, with Mahindra’s aggressive product strategy and innovative approach paying off.

Mahindra’s success can be attributed to its strong focus on the SUV segment, which has seen a surge in demand among Indian consumers. The company’s popular models, such as the XUV700, Thar, and Scorpio-N, have been major contributors to its growth ². Additionally, Mahindra’s recent launches, including the facelifted XUV300 (now sold as the XUV 3XO), the five-door Thar Roxx, and the born-electric Mahindra XEV 9e and BE 6, have been well-received by customers [6).

Hyundai Motor India Limited (HMIL) reported total sales of 58,727 units in February 2025, with 47,727 units sold domestically and 11,000 units exported ¹. While Hyundai’s exports showed a healthy growth of 6.8% compared to the same month in the previous year, its domestic sales declined from 54,003 units in January to 47,727 units in February ¹.

The Indian passenger vehicle market is undergoing a significant transformation, with SUVs gaining immense popularity among consumers. The SUV market share in India has grown from 32% in 2020 to nearly 60% in 2025, driven by consumer preference for versatile vehicles with higher ground clearance, premium features, and bold styling ³. As the market continues to evolve, manufacturers are expected to focus on innovation, quality, and affordability to strengthen their market positions.

Mahindra is expected to continue its aggressive product strategy, with new models in the pipeline, including the XUV 3XO-based compact electric SUV and the forthcoming XEV 7e ⁴. Hyundai, on the other hand, is focusing on tax reforms, improved liquidity, and new model introductions to regain its position ³. As the competition heats up, consumers can expect a wider range of vehicles, improved technologies, and potentially more competitive pricing.