Mahindra Pips Hyundai To Become India's Second-Largest Automaker After 25 Years

The Indian automotive landscape has witnessed a big transformation as homegrown Mahindra & Mahindra has displaced Hyundai Motor India from its long-held position as the country's second-largest vehicle manufacturer. This marks the end of Hyundai's impressive 25-year tenure at the top of India's automotive hierarchy, second only to market leader Maruti Suzuki, Financial Express has reported.

Dramatic Market Realignment

Recent sales figures spanning January through July 2025 show Mahindra's commanding performance against its Korean rival. Analysis of industry data reveals the homegrown manufacturer has established an advantage of 21,283 units over Hyundai during this seven-month period.

Mahindra recorded total sales of 351,065 vehicles compared to Hyundai's 329,782 units. The growth trajectory becomes more apparent when examining year-over-year performance.

What Defined Market Shift

The comparative analysis between 2024 and 2025 performance highlights the divergent paths taken by both manufacturers. During the corresponding January-July period in 2024, Mahindra significantly lagged behind Hyundai with 291,971 units sold versus Hyundai's stronger showing of 358,785 units.

However, 2025 has painted a completely different picture. Mahindra achieved robust growth of 20.2 per cent, increasing sales from 291,971 units to 351,065 units. Conversely, Hyundai experienced a notable decline of 8.1 per cent, with sales dropping from 358,785 units to 329,782 units.

Mahindra's Diversified Success Formula

The report attributes Mahindra's ascent to its well-balanced product portfolio spanning both traditional internal combustion engine vehicles and emerging electric vehicle segments. The company's ICE lineup, featuring popular models including XUV 3XO, Thar and Thar Roxx, Scorpio and Scorpio-N, has resonated strongly with Indian consumers.

Additionally, Mahindra's entry into the electric vehicle (EV) space with models BE 6 and XEV 9e has positioned the company advantageously in India's evolving automotive ecosystem.

Mahindra's position appears increasingly secure, with the company planning at least two additional vehicle launches in the coming months.

Hyundai's Over-Dependence Challenge

Automotive industry experts have identified Hyundai's strategic challenges, particularly its heavy reliance on the Creta SUV model and broader product portfolio stagnation.

"In FY25, according to data shared by the Society of Indian Automotive Manufacturers (SIAM), sales of Creta grew 20 per cent (from 162,773 units in FY24 to 194,871 units in FY25), but sales of all other Hyundai models combined (i10 Nios, i20, Aura, Exter, Venue, Verna, Alcazar, Tucson, and Ioniq 5) dropped 10 per cent— from 451,948 units to 403,795 units," an industry analyst was quoted as saying.

Future Outlook

Despite Hyundai's current challenges, the company is implementing strategic measures to regain momentum. 

"The launch of the all-new Venue in October is expected to give a push to sales, but it seems highly unlikely that Hyundai will be able to catch up with Mahindra in 2025," the analyst added.

Monthly Performance Analysis

Examination of individual monthly sales data throughout 2025 reveals Mahindra's consistent dominance over Hyundai. The Indian manufacturer has outperformed its Korean rival in five out of seven months: February, April, May, June, and July.

Maruti Suzuki Continues To Dominate

While the battle for second position has intensified, Maruti Suzuki maintains its commanding lead as India's largest automaker. Despite experiencing a modest 1.9 per cent decline in sales from 1,036,368 units to 1,016,481 units, Maruti's market dominance remains unchallenged.

Tata Motors currently occupies the fourth position in the market, trailing behind both Mahindra and Hyundai.

Hyundai's journey in the Indian market began in 1998-99 with the introduction of the Santro model. By 2000, the Korean manufacturer had successfully overtaken Tata Motors, which was experiencing success with its Indica model, to secure the second-largest automaker position behind Maruti Suzuki.

This achievement initiated Hyundai's remarkable 25-year reign as India's number two car manufacturer, a distinction it maintained until 2024 and appears poised to relinquish to Mahindra in 2025.