Mahindra Beats Hyundai And Tata Motors To 2nd Place But…Its Complicated!

Factory Dispatches High, Retail Footfall Lower

Mahindra emerged as the top utility vehicle manufacturer in July 2024 in terms of wholesale numbers, delivering 49,871 passenger vehicles to dealerships across India. However, Vahan registration data tells a more complicated story, with Hyundai leading on actual customer deliveries (43,973 retail units compared with 42,661 retail units).

Mahindra managed only 41,476 retail sales in July 2025, and by that metric, is behind Hyundai in retail sales. As for Tata Motors, wholesale sales of 40,175 units puts it in 4th place, along with 39,795 units of retail sales in July 2025. This disconnect between wholesale shipments and retail sales sheds light on broader inventory and demand issues in the market.

SUV Portfolio Drives Mahindra’s Bulk Push

The Scorpio (N and Classic) contributed over 12,000 units to Mahindra’s tally. The XUV 3XO, a refreshed version of the XUV300, chipped in another 10,000 units. Models like the XUV700 and Bolero added 7,769 and 6,930 units respectively. Even the Thar saw 4,385 units shipped, although retail enthusiasm appeared to have plateaued for the lifestyle SUV.

Inventory Levels Reach Warning Zone

The industry is currently grappling with an average inventory of 67 to 72 days at dealerships, a figure considered high by most standards. Passenger vehicle stock worth ₹73,000 crore is sitting idle across showrooms.

This oversupply situation has been driven partly by manufacturers pushing vehicles to dealers to meet production targets, despite slowing customer demand.

Mahindra’s strong wholesales, therefore, must be viewed in context. Without a matching rise in customer registrations, the growth risks being short-term and unsustainable.

Retail Sales Paint a Contrasting Picture

Hyundai, although reporting a 3.3% year-on-year dip in wholesales to 49,013 units, topped retail registrations. Its consistent demand for the Creta, which recorded 17,350 units sold in July, helped the Korean carmaker maintain consumer traction.

Tata Motors, meanwhile, reported total domestic sales of 71,996 units across commercial and passenger vehicles. But its passenger vehicle count slipped by 6% compared to July 2023, reflecting competitive pressure and possibly softer demand in some segments.

Dealer Networks Under Strain

Dealers across the board are feeling the heat from swelling inventories. Higher floor-plan interest costs, limited working capital, and the need for bigger discounts to push unsold stock have begun to erode profitability. In this climate, even a market leader like Mahindra must tread carefully.

The real test is not just in how many units are dispatched, but how many are actually driven off showroom floors. Retail performance during the upcoming festive season will be crucial.

Other Segments Show Mixed Results

Mahindra’s commercial vehicles sold 19,713 units in July, a steady performance that underlines its strength beyond passenger cars. However, exports dropped 40% to 1,515 units, and the three-wheeler business fell 45% to 3,593 units. This sharp decline comes despite three-wheeler industry growth overall, suggesting Mahindra is losing ground in that space.

Short-Term Success, Long-Term Questions

The company’s recent product refresh strategy, from the XUV 3XO to Thar ROXX, shows it understands the need to keep the portfolio fresh. However, the wholesale-retail mismatch means inventory planning must be managed better.

July’s strong dispatch numbers have given Mahindra a good headline. But the underlying demand signals suggest a more cautious market mood, and success over the festive season will depend on converting pipeline stock into actual sales.