Mahindra, Hyundai, Tata: Who dominated India’s SUV market in 2025?

Synopsis:- India’s auto market is reshaping fast, with 2025 car sales seen at 4.6 million units, up 10.5% YoY. SUV-led demand, 5.5 lakh-plus registrations, 17% production growth, and faster launches are driving leadership shifts and stronger investor momentum.

India’s automotive sector shows strong global competitiveness, backed by scale and steady demand. As the leading producer of tractors, buses, and heavy trucks, the industry benefits from volume-driven efficiencies. FY25 production of over 3.1 crore vehicles and 17% growth in June 2025 highlights resilient momentum, with two-wheelers and small cars driving domestic consumption.

With a market capitalisation of ₹4.52 lakh crore, shares of Mahindra & Mahindra Ltd were trading at ₹3,638.35, up about 1.34% from the previous close of ₹3,591.70. The stock has delivered solid returns, rising 20.93% over the past year and gaining 17.82% so far this year.

Market Leadership Shift

Hyundai Motor India’s expected drop from second to fourth place signals a clear shift in India’s auto market. Aggressive product launches, SUVs, and EV focus have helped Mahindra & Mahindra and Tata Motors gain share. Meanwhile, Hyundai’s slower refresh cycle and weaker SUV traction have eroded its dominance, as reflected in Vahan portal data.

Mahindra & Mahindra is set to end 2025 as an outperformer in India’s passenger vehicle market. With a projected registration of about 5.58 lakh units, M&M is expected to overtake both Tata Motors (5.41 lakh units) and Hyundai (5.21 lakh units). This milestone highlights M&M’s strong SUV-led strategy and marks its first calendar-year leadership over these long-established rivals.

Market Re-ranking

Strong demand, rapid model launches, and shifting consumer preferences are redrawing rankings. With total car sales expected to reach 4.6 million units in 2025, up 10.5% YoY, India is clearly outperforming early-year expectations and cementing its position as a key global auto growth engine.

Mahindra & Mahindra’s climb to the No. 2 spot from fourth place reflects a well-timed, multi-year product strategy. Analysts credit its success to frequent launches across petrol, diesel, and electric powertrains, all focused on the booming SUV segment. In 2025 alone, new launches like Thar Roxx, XUV 3XO, BE 6, and XEV 9e significantly strengthened its market momentum.

A brokerage analyst attributes Mahindra & Mahindra’s steady performance to a sharper, more disciplined strategy. The company’s focus on strong design, competitive pricing, and premium features has paid off. Unlike earlier years, M&M is now selective in its approach, prioritising depth over breadth.

Conclusion

India’s auto market is accelerating, with 4.6 million car sales expected in 2025, up 10.5% YoY. SUV-led demand, rapid product launches, and a 17% production growth highlight shifting leadership, strong consumer momentum, and the country’s rising role as a global automotive growth engine.

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