M&M Beats Hyundai Motor India to No.2 Rank in India

In what may mark the end of an era, Mahindra & Mahindra seems to have seized the No.2 slot in India's PV market, relegating Hyundai Motor India (HMIL) to the third place. This marks a shift in the Indian car industry's pecking order, with M&M’s relentless focus on SUVs and innovative launches propelling it ahead of the Korean automaker, which has long held the number-two spot behind Maruti Suzuki.

According to data for February vehicle shipments, Hyundai Motor reported domestic auto sales of 47,727 units and exports of 11,000 units. The total was 58,727 units, a decline from January's 65,603 total units. Hyundai's domestic sales saw a month-on-month decrease from January's 54,003 units to February's 47,727 units.

On the other hand, Mahindra & Mahindra reported impressive 19% year-on-year growth in SUV sales for February 2025, with domestic SUV sales reaching 50,420 units, beating Hyundai's number by 2,700 units.

Relentless Innovation

M&M’s ability to refresh designs, introduce innovative features, and cater to evolving tastes outpaces Hyundai’s more cautious approach, which often banks on Creta updates rather than bold, frequent model introductions, limiting its adaptability in a dynamic market.

However, the Korean company remains optimistic about future domestic market performance. "Despite geopolitical challenges, we remain optimistic that the proposed tax reforms in the Union Budget 2025 and improved liquidity will provide the much-needed demand boost to the market," added Mr. Garg.

The change has come as India’s passenger vehicle market has witnessed a dramatic surge in SUV sales after the COVID period, reshaping the automotive landscape and eclipsing the once-dominant hatchbacks and sedans. This is benefited both automakers, but M&M has been favored more as it does not have any models in the hatchback or sedan segments.

From 2020 to 2025, SUV market share soared from 32% to nearly 60%, driven by shifting consumer preferences for versatility, higher ground clearance, and bold styling suited to India’s diverse terrains and improving road infrastructure.

Models like the Mahindra Scorpio N, Hyundai Creta, and Tata Harrier have fueled this boom, with sales jumping from 10.02 lakh units in 2021 to over 20 lakh in 2024.

Meanwhile, hatchbacks, traditionally favored by urban buyers, and sedans have seen their combined share dwindle below 40%, as affordability takes a backseat to aspirational buying. Rising disposable incomes, a growing middle class, and aggressive SUV launches by automakers like Mahindra and Hyundai have cemented this trend, relegating compact cars to a shrinking niche.

Exports

As global markets continue to show strong interest in Hyundai's Indian-manufactured vehicles, Hyundai plans to further optimize its export strategy to strengthen its position as a major export hub for Hyundai Motor Company.

Meanwhile, both manufacturers demonstrated strength in exports, albeit at different scales. Mahindra reported a remarkable 99% year-on-year increase in exports with 3,061 units shipped overseas in February 2025. Meanwhile, Hyundai's export volume was substantially higher at 11,000 units, representing a 6.8% year-on-year growth.

Hyundai's export growth highlights increasing global demand for Hyundai's Made-in-India vehicles and further reinforcing the company's position as a key manufacturing hub for its parent company.

Meanwhile, all this comes amid signs of moderation in Indian auto sales, signaling a potential cooling period after three consecutive years of high demand in the Indian automotive market.