Mahindra Clinches 2nd Spot As Largest Car manufacturer By Sales, Ending Hyundai's 25-Year Reign

The Indian automotive landscape has witnessed sudden surges, as Mahindra and Mahindra has emerged as the nation's 2nd largest car manufacturer in terms of sales figures. The Indian brand has taken Hyundai after the latter’s uninterrupted 25-year reign. This signifies how changing buyer preferences, strong SUV demand, and a revitalized product portfolio have propelled the homegrown automaker to new heights.

As per the latest reports, Hyundai was at the forefront of Mahindra in sales terms. However, things changed in the fiscal year of 2025-26. Hyundai, once the undisputed challenger to Maruti Suzuki, now finds itself rethinking its strategy amidst increased competition and shifting industrial trends. Here’s everything you need to know about Mahindra’s sudden jump to new heights.

SUV-Led Growth Drives Mahindra’s Sales Surge

Mahindra and Mahindra has seen a powerful surge in sales of its all-new SUVs in the Indian market. The brand's most promising models, like the XUV 700, Scorpio N, and the Thar, helped to accomplish such milestones. These Mahindra models have not only gained mass appeal but also established strong waiting lists, reflecting tremendous demand as customers increasingly prefer feature-rich, high-riding utility vehicles over traditional sedans and hatchbacks.

As per the sales reports, from the month of January to July 2025, Mahindra has sold 21,834 more units than Hyundai in general. The Indian SUV maker has sold around 351,065 units this year, more than Hyundai’s 329,782 units. Coupled with strategic pricing, continuous brand-building, and expanded production capacity, Mahindra has consolidated its place as a mass-market favorite.

Hyundai Faces Tougher Road Ahead

This fiscal year, many industry analysts attributed Hyundai's slowdown to product fatigue and an overreliance on the Creta alone. The milestone marks a clear warning sign to Hyundai, as Mahindra’s success was pioneering against Hyundai’s Creta, Venue, and i10 in weak sales. The Korean brand now lags in the fast-growing SUV space, despite popular products such as the Creta and Venue.

In FY25, according to the data shared by the Society of Indian Automotive Manufacturers (SIAM), sales of Creta grew by 20% from 162,773 units in FY24 to 198,871 units. However, other models under the portfolio witness a drop of 10% from 451,984 units to 403,795 units. The pressure has mounted further as newer rivals like Kia and Tata Motors aggressively target the same urban and semi-urban buyers with stylish products.

What’s Next For Mahindra

Mahindra, on the other hand, is riding high on the success of both its ICE and EV models. The brand has at least two new car launches planned in the next few months, which will boost its sales figures. The company has already showcased a lineup of upcoming Born Electric SUVs, indicating that its ambition extends beyond ICE dominance.

As Hyundai is making preparations for its upcoming launch of the all-new Venue in October, it is expected to give a push to sales. But it seems highly unlikely that Hyundai will be able to catch up with Mahindra in the 2025 season.

CarBike360 Says

By overtaking Hyundai after 25 years, Mahindra has cemented its reputation as the new powerhouse of India’s SUV-driven car market. For buyers, it reflects a choice for homegrown innovation and for rivals.

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