How Mahindra Took Down Hyundai

In a dramatic turn of events in India’s automotive landscape, Mahindra & Mahindra has overtaken Hyundai Motor India, displacing the Korean giant from its long-held position among the top passenger vehicle manufacturers. April 2025 marked a defining moment, with Mahindra surpassing both Hyundai and Tata Motors to secure second place behind Maruti Suzuki. This isn’t just a one-off monthly sales shift. It reflects deeper changes in buyer preferences and affirms Mahindra’s focused strategy of capitalising on the SUV boom while steadily building a presence in the electric vehicle segment.

The Market Reshuffling

Mahindra posted retail sales of 48,405 units in April, capturing a 13.83% market share, a notable rise from 11.23% a year ago. This year-on-year growth of over 25% propelled it past Hyundai and Tata Motors in the monthly rankings.

Hyundai, by comparison, slipped to fourth with sales falling to 43,642 units and market share dipping to 12.47%, down from 14.29% the previous year.

The company saw the sharpest decline among the top four, behind Maruti Suzuki (39.44%), Mahindra (13.83%), and Tata Motors (12.59%).

While the overall passenger vehicle market grew modestly by 1.55% to reach 349,939 units in April, Mahindra's performance significantly outpaced the industry average. Hyundai, on the other hand, lost ground.

Riding the SUV Wave

At the heart of Mahindra's surge is its single-minded focus on SUVs, a segment experiencing consistent demand across urban and rural markets. Mahindra has doubled down on its identity as an SUV specialist, with all 52,330 vehicles sold in April falling into this category.

The Scorpio-N led the charge with 15,534 units, followed by the Thar (10,703), Bolero Neo (8,380), XUV 3XO (7,568), and XUV700 (6,811). This line-up speaks directly to consumers looking for robust, feature-packed vehicles with strong road presence.

Hyundai, despite having popular SUVs like the Creta, continues to maintain a broader portfolio spanning hatchbacks, sedans, and SUVs. While this approach once offered flexibility, it now appears less suited to a market where the SUV has become the clear preference.

Rural Strength: Bolero’s Enduring Legacy

A key pillar of Mahindra’s success remains its dominance in rural markets. The Bolero range, including the Classic and Neo variants, clocked 15,758 units in April. These ladder-frame SUVs cater to commercial and agricultural buyers who value durability, ease of maintenance, and basic comfort. Hyundai’s urban-centric offerings like the Venue and Exter have little appeal in this segment.

With around 70% of the rural utility vehicle market under its belt and no real competitors offering equivalent ruggedness at the same price, Mahindra’s stronghold is unchallenged. Recent updates to the Bolero, such as touchscreen infotainment and enhanced interiors, have only broadened its appeal without compromising on its utilitarian DNA.

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Focused Growth vs Fragmented Strategy

Mahindra’s rise has been driven by a sharply defined product strategy: a full-spectrum SUV portfolio that covers multiple price points, from the rugged and affordable Bolero Neo to the premium and feature-rich XUV700. This specialisation has helped the brand develop deep expertise and credibility in a segment that continues to dominate buyer interest.

Hyundai, in contrast, follows a broad-based approach, offering hatchbacks like the Grand i10 Nios and i20, the Aura sedan, and a range of SUVs including the Venue, Creta, Alcazar, and Tucson. While this diversification once allowed Hyundai to serve a wider audience, it now appears to be diluting its edge in the most competitive segment which is the SUVs.

Sales figures reflect this shift. The Venue and Exter, once pillars of Hyundai's volume strategy, have seen combined sales fall 18% year-on-year to 13,369 units. The Grand i10 Nios, long a mainstay in the hatchback space, mustered only 4,137 units in April, significantly behind Maruti’s Swift and Baleno. The Aura sedan too has lost steam, recording a 17% month-on-month drop to 4,224 units as newer, more relevant rivals chip away at its market.

Even Hyundai’s most successful model, the Creta, which accounted for 38% of its April sales, is showing signs of strain. Though it remains popular with 17,016 units sold, competition is intensifying. Rivals like the Tata Harrier and Safari are drawing buyers with comparable features, bold styling, and competitive pricing.

Hyundai’s broader portfolio, once seen as a strength, now appears fragmented and out of sync with evolving buyer preferences. Mahindra’s focused commitment to SUVs, by contrast, has translated into stronger brand resonance and sustained momentum in the segments that matter most right now.

EVs: Bold vs Cautious

The contrast in EV strategies is striking. Mahindra has gone all-in with dedicated EV models like the BE 6 and XEV 9e. These born-electric SUVs offer futuristic design, spacious interiors, and new-age features, and were met with a blockbuster response with over 30,000 bookings on launch day alone.

In April, Mahindra sold 3,002 EVs, marking a 348% year-on-year jump and accounting for 24% of the EV market. Hyundai, in contrast, has been more cautious. Its Creta Electric, adapted from the petrol version, has sold only around 600 units in March. The company’s total EV sales for April stood at just 686 units. Though this was a sharp rise compared to the previous year, it remains far behind Mahindra’s volumes and momentum.

Is Mahindra’s Win Sustainable?

The key question now is whether Mahindra can sustain this momentum. Its SUV-centric strategy is perfectly aligned with current demand, but could become restrictive if market dynamics shift. In the EV space, long-term leadership will depend on consistent product quality, charging infrastructure, and after-sales support.

Hyundai, on the other hand, has the scale and R&D muscle to bounce back. But to reclaim lost ground, it will need to close the SUV gaps and accelerate its EV play with models built from scratch for electric use, not just ICE conversions.

What’s clear is that Mahindra’s April victory is not a fluke. It’s the result of sharp strategic choices, a commitment to SUVs, deep rural penetration, and bold EV bets. Whether it becomes the new norm or a temporary shake-up will depend on how quickly Hyundai adapts to the new rules of the game.