In an unusual shift of trends that has taken the Indian automotive market by surprise, Mahindra & Mahindra has achieved an almost-impossible-for-some feat by starting the 2025-26 fiscal year bagging second place in the highly competitive passenger vehicle market in India, even as it ushered in the downfall of both Tata Motors and Hyundai. The domestic SUV specialist recorded a phenomenal year-on-year growth of 28 per cent for April 2025, which translated to 52,330 units of sales against 41,008 units in the corresponding month of last year. This stupendous performance has consolidated Mahindra’s standing as a solid player in the Indian Automobile market hitherto which was dominated only by Maruti Suzuki.
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A Battle of Titans: The Race for Second Place
It has not been a drama-free journey to this point. Hyundai, the Korean giant, had long been the second-largest carmaker in India, while Tata Motors and Mahindra had been jockeying for third place. But the winds of change started blowing at the beginning of this year. In February 2025 Mahindra had already given a hint of what lay in store by clinching being India’s second biggest carmaker for the first time with 19 per cent year-on-year growth, leaving Hyundai behind. But that triumph was short-lived.
Hyundai returned to the top of the podium by March 2025, by a whisker of difference, having sold about 51,820 units in domestic market, ahead of Tata (51,616 units). Mahindra, which took over the second position briefly in February, settled for fourth in the list with 48,048 units. The razor-thin difference at the top of 6 points (204 units) was an indication of how close the tussle had become between Hyundai and Tata.
But Mahindra wasn’t done yet. By April 2025, the firm was not only restored, but stronger than ever. It easily overtook Hyundai, which recorded a 4.6 per cent year-on-year drop in domestic sales at 44,374 units, even as it became India’s second largest UV manufacturer. This 8,000-odd gulf is quite healthy, in place of what used to be razor thin margins in last few months.
The enormous task of India If you’re an auto enthusiast, you’re sure to have Rajesh Sharma, a seasoned analyst of the Indian automotive sector in Mumbai, offers some perspective “There’s a structural offering, not a monthly movement in India.” The brand Mahindra has evolved from a utility vehicle maker to a manufacturer of premium SUVs that strikes a chord with the aspirational Indian customer.”
The S.U.V. Wave: Riding the Crest
Mahindra’s rise isn’t occurring in a vacuum, however, but in the midst of a profound shift in India’s automotive tastes. The passenger car market itself has also seen a mass migration towards SUVs – this is the body style of choice for an increasing number of Indian buyers.
” For five years our streets, gardened streets that consumers drive on, felt as though the whole wide world was zipping around in a hatchback. “Things are different now, it wasn’t like this before,” says Priya Menon* of a Bengaluru dealership that stocks brands. “The people are coming in asking for SUVs, it is the high seats, the road presence, the safety-image the car projects. And Mahindra, with all its SUVs is well poised to take advantage of this movement.”
In fact, the numbers prove it. SUVs market share has surged, from 32% in 2020 to almost 60% in 2025. This trend has especially worked well for manufacturers with a robust SUV portfolio and no one knows it better than Mahindra, who had been betting high only on this segment.
The Arsenal: A Lineup That Gets It Done
The resurgance of Mahindra can be attributed directly to its product line up, which has changed in harrowing ways over the last few years. The company’s range now includes models that are among the most desired in the country offering both rugged capability and a premium feature set together with an international pedigree.
At the forefront is the XUV700 – Mahindra’s new flagship that has changed expectations in its category. Coming to the XUV700, which was introduced in 2021, recently surpassed the sales figure of over 2.5 lakh units sold, and still remains highly popular even after being in the market for more than three years. In both petrol and diesel engine options, the three-row SUV comes with features such as panoramic sunroof, twin 10.25-inch screens, driver assistance systems and integration with Amazon Alexa.
As sop to Mahindra’s success, it would appear, there’s also the Scorpio N, a vehicle that continues the tradition of I ndia’s most famous SUV nameplate. From ₹13.99 lakh to ₹24.89 lakh The Scorpio N, like its forebears, labours to marry an old-world ladder-frame robustness with the amenities the famished modern buyer craves. Many Indians have found that combination irresistible, desiring an SUV that can handle rough terrain along with family-friendly comfort.
Rounding off the trio is the Thar range, which has been expanded to include the original three-door model and the more family-friendly Thar Roxx. The Thar which is a three-door SUV, has recently surpassed the 2 lakh sales figure, showing how buyers still are smitten by the charm of this no-nonsense, purpose-built off roader. The Thar Roxx, by contrast, comes with additional doors and a more practical layout, taking the iconic brand to a much larger audience without diluting the DNA of the brand.
Vikas Gupta, another Scorpio N owner from Delhi, spoke to us about why he picked Mahindra over the competition: “I took test-drives of all that was there, including Hyundai and Tata — I even tried to take a test drive of XUV (500), but they didn’t give it to me. But there is something about the Mahindra that feels a little bit special – that solid construction, the domination on the road. It does feel like it is conceptualized for Indian conditions, not just customised for it.”
Looking Ahead: Maintaining the Momentum
Getting to No 2 is an incredible achievement, but what needs to be seen is how it is able to hold ground now that it is under intense competition from rivals. Both Hyundai and Tata Motors have solid product pipelines, and aren’t to be left behind in the race.
Mahindra, however, looks ready for the fight. The company has a strong portfolio of updates lined up for 2025 which includes updated model years for the XUV700, Scorpio N and the three-door Thar. These new features and technologies are needed to keep these models competitive in an increasingly packed market.
More notably, the Mahindra has growing presence in the electric vehicle domain. The firm is expected to launch the XUV700 EV, expected to be named as XEV 7e, in 2025. This will be followed by other all-electric lineups as part of the Mahindra’s “based-on-XUV” series and “BE” (Born Electric) offerings.
Anand Mahindra took to social media to celebrate the milestone in true modest style: “I’d say the big news today is just this: ’25 lakh’ trucks and buses bearing the Mahindra & Mahindra insignia are on the road in India, clocking ·+200 bn revenue for us in 15-odd years! We’re not there to check a box, we’re there to deliver against our promise of real, capable SUVs.” The journey continues.”
Creating a Community
More than the products and the numbers, one thing that distinguishes Mahindra is the incredible community around these vehicles. From the Thar enthusiasts who frequently take part in off-roading trips to XUV700 owners who exchange tips and experiences on social media, Mahindra has been able to create an ‘inclusiveness’ which is not matched by many other car brands in India.
“When you buy a Mahindra, you’re not buying a vehicle, you’re joining a fraternity,” says Rohan Patel, who coordinates Mahindra off-road events in the state of Gujarat. I’ve witnessed strangers become pals just because they’re behind the wheel of the same model. That’s powerful.”
This community feel has been actively encouraged by the company – brought to life by the Mahindra Adventure series and seconded by an engaged social media team. The amount of feeling that a lot of people have for their car goes beyond what a marketing analysis can measure.
Challenges on the Horizon
While it is doing well now, Mahindra still has its share of challenges in coming years tightening its grip. However, production limitations have sometimes meant that order backlog for popular models might not get past for a while. Keep continuing increase in price – diesel vehicles is the bulk of Mahindra sales- then possible customers changin minds down the road.
Competition is getting fierce as well; pretty much every automaker now has all of its might behind SUVs. Recently, Hyundai introduced its new-generation Creta, the best-seller for the brand, and Tata Motors is widening its product range with the Curvv (and other models in the future).
A New Chapter Begins
With Mahindra also sitting second in the standings for the close of the first month of FY26, that amounts to more than just a bit of statistical trivia. It is an acknowledgment of age of an Indian manufacturer which has gone from being a maker of utility vehicles to a creator of aspirational SUVs that can be pitted against global brand on equal footing.
For the Indian auto industry, Mahindra’s ascent proves that local manufacturers can win through a mix of understanding local preferences, product development, and emotional connect with customers.
As Mahindra heads into FY26 off the back of this heady start, both analysts and enthusiasts will be eagerly watching to gauge whether this is a blip or the emergence of a new status quo in the Indian automobile space. Either way, the message is loud and clear: Mahindra’s finally in a position to take on the big boys in the game, and its rivals would be foolish to discount that.
