Hyundai Slips to No.4 in India's Car Retail Market as February Sales Slide

In a significant reshuffling of India's passenger vehicle retails, Hyundai Motor India has been pushed down to fourth place in February 2025, according to the latest sales data released by the Federation of Automobile Dealers Associations (FADA). This marks a notable decline for the Korean automaker, which had consistently maintained its position as India's second-largest carmaker for several years and was still firmly in the second spot as recently as January 2025.

The February data reveals that Hyundai recorded sales of 38,156 units, capturing a 12.58% market share. This puts the company behind market leader Maruti Suzuki (38.94%), Mahindra & Mahindra (13.15%), and Tata Motors (12.75%) in the monthly rankings.

The shift represents a dramatic change from January's standings, when Hyundai held 12.85% of the market with 59,858 units sold, comfortably maintaining its second position ahead of Tata Motors (11.57%) and Mahindra (11.14%). The February figures demonstrate a substantial month-on-month decline of over 21,700 units or approximately 36% for Hyundai.

This latest development is part of an intensifying three-way battle for the number two position that has been brewing over the past year. While Hyundai has traditionally held the second spot behind Maruti Suzuki, both Tata Motors and Mahindra have mounted aggressive challenges, creating a "three-way tussle" for market dominance.

Mahindra's rise to second place in February is particularly noteworthy as it marks a significant milestone for the company. This February data from FADA confirms that Mahindra's surge wasn't a one-time phenomenon but rather indicates a potential shift in market dynamics.

Industry analysts attribute this repositioning to multiple factors, including the overall market contraction and the aggressive momentum of domestic manufacturers. The overall passenger vehicle segment witnessed a steep 10.34% year-on-year decline in February, with retail sales falling to 3,03,398 units compared to 3,38,390 units in the same month last year. The segment also recorded a sharp 34.88% month-on-month decline from January's 4,65,920 units.

The SUV segment has been a key battleground in this contest, with consumer preferences increasingly shifting toward rugged, versatile vehicles. Mahindra's SUV-only strategy has paid dividends, with models like the Scorpio, XUV700, and the recently launched XUV 3XO fueling its growth. Meanwhile, Hyundai's SUV portfolio, which includes the popular Creta, Venue, and Exter, has contributed significantly to its sales but has faced increasing competition.

Tata Motors, buoyed by its "New Forever" portfolio and focus on safety, stylish designs, and a robust electric vehicle lineup led by the Nexon, Punch, and Tiago, has also been on an upward trajectory, despite some hiccups. The company briefly overtook Hyundai in February 2024, signaling the beginning of this competitive reshuffling.

"The PV segment, despite a modest 4% YTD growth, saw retail sales fall sharply by 10.34% YoY," noted FADA President C.S. Vigneshwar in the report. "Dealers noted weak market sentiment which especially continues in the entry level category, delayed conversions, and challenging targets."

For Hyundai, which has been a dominant force in the Indian market since its entry over two decades ago, this repositioning raises questions about its product strategy and market approach. The company's slide comes despite having refreshed much of its portfolio in recent years and investing heavily in future capacity and electrification, including plans to launch an electric Creta in Q1 2025 and a Rs 200 billion commitment to EVs.

Market leader Maruti Suzuki maintained its dominant position with 1,18,149 units in February, commanding 38.94% market share, though this represented a significant drop from January's 2,11,074 units (45.30%). Despite the volume decrease, Maruti actually increased its market share advantage over competitors in February.

The FADA data also highlights inventory concerns across the industry, with passenger vehicle stock levels standing at 50-52 days, well above the ideal range. This suggests manufacturers have been pushing inventory to dealers despite softening retail demand.

Looking ahead, FADA's dealer survey indicates cautious optimism for March, with nearly 45% of dealers predicting growth, supported by multiple festivals including Holi and Gudi Padwa, along with year-end depreciation benefits. Whether Hyundai can reclaim its traditional second position will depend on how effectively it capitalizes on these opportunities compared to its increasingly assertive domestic rivals.

For Hyundai, which has invested heavily in the Indian market with manufacturing capacity expansions and new model introductions, regaining its position will be a critical priority as it navigates the challenging market conditions expected to continue through early 2025. With Mahindra's consistent growth — 19% year-on-year in February 2025 contrasting with Hyundai's 4% decline and Tata's 9% drop — the race for the number two spot promises to remain fiercely competitive in the months ahead.