Hyundai Retakes Second Spot, Tata Motors Beats Mahindra For 3rd Spot In Indian Car Market

In a closely fought battle for dominance, Hyundai Motor India reclaimed its position as the second-largest automaker in March 2025. The Korean car giant edged out Tata Motors, while Mahindra & Mahindra, which had secured second place in February, dropped to fourth. So now, Maruti Suzuki continues to retain is first spot, followed by Hyundai. Tata Motors ranks third and Mahindra is in the fourth spot. This ranking shift is driven by the increasing popularity of SUVs in the Indian market.

Hyundai Overtakes Tata By A Narrow Margin, Major Rankings Shake

According to shipment data released on April 1, Hyundai recorded domestic sales of approximately 51,820 units in March 2025. Tata Motors follows closely with 51,616 units sold last month. This narrow margin of 204 units allowed the Korean to regain its traditional second-place ranking.

Mahindra, which had briefly overtaken Hyundai in February, saw a decline in March sales, reporting retails of just 48,048 units. In February, it had sold 50,420 units. This means a month-on-month decline of 4%. Despite falling back to fourth place, Mahindra has shown strong year-on-year growth, particularly in the SUV segment.

Mahindra’s SUV Surge Stalls (Temporarily)

Mahindra’s impressive February performance was driven by high demand for its popular SUV models like the Scorpio-N, XUV700, and Thar (both the ROXX and the 3-door). However, its drop to fourth place in March also suggests the possibility of various production constraints and supply chain challenges in play. Despite the setback in March, Mahindra remains optimistic about its long-term strategy.

We expect it to make a strong comeback with the April numbers, as the carmaker had started commencing deliveries of its Electric Origin SUVs- BE 6 and XEV 9e- in mid-March. Both vehicles have been runaway hits and the order backlog is quite long.

Thus, getting their deliveries to the full swing could boost the manufacturer's overall numbers significantly. Plus, Mahindra has been steadily increasing production to meet demand and remains a key contender in the fight for the 'second-largest automaker' spot in India.

Revised Rankings Driven By SUV Boom?

The demand for SUVs has recently been on a steep climb. Their market share jumped from 32% in 2020 to nearly 60% in 2025. This has forced all major players to focus on strengthening their SUV portfolios.

Hyundai capitalized on the trend by aggressively expanding its SUV range. The most recent launches are the Creta Electric and the updated Alcazar. SUVs now contribute to 68.5% of its total sales in India. Similarly, Tata Motors has also been having a strong focus on SUVs. From the Punch to the Safari, the range is expansive. The Punch has in fact, become India’s best-selling SUV for private buyers in FY25.

Even Maruti Suzuki, which has traditionally dominated the hatchback and sedan segments, has made a significant push into the SUV space. Models like the Brezza, Fronx, Grand Vitara, and Invicto, helped the total utility vehicle (crossovers, SUVs and MPVs combined) sales to climb to 61,097 units in March 2025, a 4.6% increase compared to the same month last year.

Hyundai Maintains Its Export Leadership

While the domestic market remains highly competitive (and fluid), Hyundai continues to lead in exports. In March 2025, it exported 15,500 units, continuing as India’s largest passenger vehicle exporter. Tata Motors could export just 256 units, while Mahindra recorded 2,787 units in exports.

For the entire financial year FY24-25, Hyundai commenced exports of 163,386 units, significantly more than its competitors. This strong export performance not only provides it with greater production efficiency but also helps stabilize its overall business amid domestic fluctuations.

The Battle Continues

The battle for the second spot in India’s car market is far from over. Automakers are actively investing in new models and technologies. This means that the rankings will stay fluid in the upcoming months as well, and we will get to see fiercer fights from within the triad.