Mahindra Beats Hyundai, Tata Motors To # 2 Spot. Again!
Why focus, timing, and market instincts have helped Mahindra outpace Tata and Hyundai, at least for now.
For the second straight month, Mahindra has outpaced Tata Motors and Hyundai in domestic passenger vehicle sales, holding on to the No. 2 position behind Maruti Suzuki. In May 2025, Mahindra clocked 52,431 SUV sales in India, a healthy 21 percent increase over the same month last year. With exports included, the SUV tally rose to 54,819 units. Overall vehicle sales, including commercial and three-wheeler segments, reached 84,110 units, marking a 17 percent year-on-year rise.
In contrast, Tata Motors reported 41,557 passenger vehicle sales, down 11 percent from last year. Hyundai fared slightly better with 43,861 units sold, but it too saw an 11 percent dip. Even with Hyundai’s stronger export numbers, Mahindra remained ahead in domestic sales, reinforcing that this is more than just a one-off result.
One Segment, One Mission: The SUV Playbook
What sets Mahindra apart is its undivided attention to a single segment: SUVs. While rivals juggle hatchbacks, sedans, and electric offerings, Mahindra has gone all in on the SUV formula. This clarity has worked well in a market where SUVs now dominate buyer interest.
The company’s line-up - Scorpio-N, Thar, XUV700, and the newer XUV 3XO - has struck a balance between rugged design, feature-rich cabins, and strong brand identity. These are not just vehicles, they represent a lifestyle shift for buyers who want more than just a commuter car.
Mahindra’s recent launches have found resonance not only for their looks or features, but also because they feel distinctive. The Thar Roxx appeals to off-road enthusiasts. The XUV700 still holds its ground as a well-rounded family SUV. And the 3XO is broadening the brand’s reach in the compact SUV space.
Where Rivals Are Falling Behind
Tata Motors, despite being an early mover in the EV space, has seen its momentum wane. Models like the Punch and Nexon still bring in numbers, but the company has lacked a strong new ICE launch in recent months. Tata’s EV focus may serve it well in the long run, but for now, traditional petrol and diesel SUVs continue to dominate buyer preference.
Hyundai, meanwhile, has faced internal constraints. Production slowdowns due to scheduled maintenance and inventory realignment have dented output. Even though the Creta remains a best-seller, the rest of the portfolio hasn’t done enough to plug the gap. Higher-end models like the Tucson and Ioniq 5 are well received in their niches, but those niches are too small to impact the larger sales picture.
Timing, Capacity and Market Pulse
Mahindra’s ascent is also about being in the right place at the right time. As SUV demand surged, Mahindra was not only ready with a compelling product line-up but also had the capacity to scale up. The company’s export performance is another bright spot, up 55 percent so far this year, helping lift overall volumes and adding another revenue stream.
That said, the competitive landscape is set to change. Hyundai is building a new plant in Pune. Tata is expanding its production footprint. Both companies are preparing for an offensive in the next few quarters, which could reset the order once again.
Can Mahindra Stay Ahead?
Mahindra’s current position is a result of deliberate choices, not just market luck. The product strategy is clear, the execution consistent, and the demand is being met. But staying ahead will require more than just doing more of the same.
Electric SUVs, connected tech, and changing regulations will define the next stage of growth. Mahindra appears to be preparing for that shift, but so are its competitors.
For now, Mahindra’s success story is a reflection of a company that bet on its strengths and timed its moves well. Whether it can defend its spot through the next cycle of change is the real test ahead.