Top Auto Manufacturers In India See Market Share Fall Amid Stiff Competition In FY25

India's leading automobile manufacturers witnessed significant market share erosion in fiscal year 2025 (FY25), hitting multi-year lows as smaller competitors gained ground in a market that sold over 25 million vehicles, according to a report by ET Auto.

Maruti Suzuki, Hyundai's Dominance Falls

A Jefferies Equity Research report, as quoted by ET Auto, revealed that passenger vehicle segment leaders Maruti Suzuki and Hyundai saw their dominance diminish to 12-year lows. Meanwhile, Mahindra & Mahindra and Toyota Kirloskar emerged as growth leaders. 

In the two-wheeler category, Hero MotoCorp's market share contracted to a historic low of 28 per cent in FY25, drastically down from 45 per cent in FY12, as competitors TVS Motor and Honda Motorcycles narrowed the gap.

India maintains its position as the world's third-largest passenger vehicle market and the premier market for two-wheelers. The passenger vehicle segment experienced modest growth of just 2 per cent in FY25, with market leader Maruti Suzuki's share falling to 40.9 per cent –-- its lowest since reaching 39 per cent in FY13 and significantly below its peak of 51 per cent achieved in FY19 and FY20.

Hyundai, the second-largest manufacturer, saw its market share decline to 14 per cent during the previous fiscal year, matching levels last seen in FY14 and well below its peak of 17 per cent recorded in fiscal years 2016, 2017, 2020, and 2021.

"The companies that have gained market share have done so largely on the back of product launches in categories (say, SUVs) where demand traction was high. This, in turn, helped them fill product gaps," said Hemal Thakkar, senior practice leader and director at research and consulting firm Crisil Intelligence.

Growth Amidst Industry Slowdown

Mahindra & Mahindra and Toyota Kirloskar Motor were the only automotive manufacturers to achieve both volume and market share growth in the last fiscal year, preventing the industry from experiencing negative overall growth.

However, Thakkar cautioned that future gains would be challenging in the current sluggish market unless manufacturers deliver exceptional customer experiences in both sales and service. 

As per credit rating agency Crisil, further deceleration in car market growth is likely this year, citing dealer inventory surpluses, market volatility, and general uncertainty.

Jefferies Research analyst Nitij Mangal notes that while Maruti's market share decline stems primarily from the industry's shift in consumer preference from traditional cars to SUVs, Hyundai -- despite having a balanced portfolio across both segments – has experienced market share losses in both categories in recent years.