Mahindra & Mahindra Ends FY25 on a High, SUV Sales up 20% in the Year

March 2025 total auto sales stood at 83,894 vehicles, marking a 23% growth compared to March 2024.

By Angitha Suresh

01 Apr 2025

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Mahindra & Mahindra Ends FY25 on a High, SUV Sales up 20% in the Year

Mahindra & Mahindra Ltd (M&M) has closed fiscal year 2025 with its highest-ever SUV sales of 551,487 units, crossing the significant milestone of 5 lakh SUVs in the domestic market for the first time in the company's history. This represents a robust 20% growth compared to the previous fiscal year's 459,864 units.

The latest monthly figures for March 2025 reinforced this positive trend, with total auto sales standing at 83,894 vehicles, marking a 23% growth compared to March 2024. The SUV segment alone contributed 48,048 vehicles in the domestic market during March, achieving an 18% year-on-year growth.

The strong annual performance has established Mahindra as the No. 1 SUV player in the Indian market and catapulted the company to become the No. 2 Passenger Vehicle manufacturer by revenue. Mahindra also reported the highest Vahan registrations with a 20% growth for the fiscal year, helping maintain optimal dealer inventory levels.

"The year ended on a very positive note with us selling over 5 lakh SUVs in the domestic market for the first time ever," said Veejay Nakra, President, Automotive Division, M&M Ltd. "We also started the deliveries of our Electric Origin SUVs, where we see a strong continued demand momentum."

Mahindra & Mahindra (M&M) is reaping significant rewards from India’s decisive shift toward premium and SUV segments, as demand for classic cars wanes. With rising disposable incomes, rapid urbanization, and a growing appetite for versatile, feature-packed vehicles, M&M has solidified its dominance in the SUV market.

The strong growth is a result of its alignment with consumer preferences. Models such as Scorpio, Thar, and XUV700, alongside newer launches such as Scorpio-N and Thar Roxx, have struck a chord with buyers seeking rugged performance, advanced technology, and premium aesthetics.

Unlike the declining sedan and hatchback categories, SUVs now account for over 50% of passenger vehicle sales in India, a trend M&M has adeptly capitalized on. The company’s ₹27,000 crore investment into its auto division, including hybrids and electric vehicles (EVs), positions it to lead this transformation, further fueled by rural demand recovery and favorable monsoons.

In contrast, Maruti Suzuki, India’s largest carmaker by volume, is struggling to adapt. Historically dominant in the entry-level and small-car segments with models like Alto and Swift, Maruti has been slow to pivot to SUVs and premium offerings. Its SUV portfolio—Brezza, Grand Vitara, and Jimny—has gained some traction, but it lags behind M&M’s aggressive innovation and brand equity in this space. Maruti’s market share dipped below 40% in 2024 as small-car sales plummeted, reflecting its over-reliance on a shrinking segment. The company’s delayed push into EVs and premium SUVs has left it playing catch-up, with analysts noting a lack of aspirational appeal compared to M&M’s rugged, tech-forward lineup.

Hyundai, another key player, faces similar challenges. Known for sedans like Verna and compact cars like i20, Hyundai has lost ground as SUVs overtake its traditional strengths. While Creta remains a strong contender, Hyundai’s broader SUV range lacks the diversity and bold positioning of M&M’s offerings. Its premiumization efforts, such as Alcazar, have underperformed, and its EV strategy trails M&M’s ambitious roadmap. With SUV sales projected to grow at a 10% CAGR, Hyundai’s hesitation to fully pivot from classic cars has dented its market share, which slipped below 15% in 2024. M&M’s proactive stance starkly contrasts with Maruti and Hyundai’s struggles to shed their legacy baggage.

Beyond SUVs, Mahindra showcased impressive growth across its portfolio. The Light Commercial Vehicle segment in the 2T-3.5T category recorded annual sales of 217,060 units, showing a 6% growth, while the three-wheeler segment achieved an 11% year-on-year growth with 85,832 units sold during the year. The company also crossed the 50% market share threshold in the LCV<3.5T category, further solidifying its leadership in the commercial vehicle space.

Mahindra's international expansion has been equally noteworthy, with exports reaching 34,709 units for fiscal year 2025, representing a significant 41% growth compared to the previous fiscal year. This international growth complements the company's domestic success and highlights its expanding global footprint.

Another significant achievement for the fiscal year was Mahindra becoming the only Indian auto company to obtain DJSI Index world leader status, underlining the company's commitment to sustainability and responsible business practices.

Mahindra's record-breaking annual performance cements its position as a major player in India's automotive landscape, with its focus on SUVs, commercial vehicles, and emerging electric mobility solutions continuing to drive the company's growth trajectory.