Hyundai Motor India is set to lose its long-held second position in the highly competitive domestic market at the close of 2025 to Mahindra & Mahindra. The South Korean carmaker is expected to slide to the fourth position, behind local rivals M&M and Tata Motors, slipping from the second spot for the first time since vehicle registration data became publicly available on the government’s Vahan portal in January 2019.
The registration numbers include electric vehicle (EV) models of the carmakers.
M&M is projected to close 2025 with vehicle registrations of 557,524 units, ahead of Hyundai Motor India’s estimated 520,834 units. Tata Motors is likely to rank third with registrations of around 541,365 units. This will mark the first time Mahindra & Mahindra has outsold both Tata Motors and Hyundai in a calendar year.
“The change in the pecking order reflects the vibrancy and growing competitive intensity of the world’s third-largest passenger vehicle market,” said an industry analyst, who did not wish to be identified.
It comes as car sales in India are projected to hit 4.6 million units by the end of 2025, up 10.5 per cent year-on-year, beating forecasts at the start of the year.
Timely facelifts of legacy models
Vinkesh Gulati, director at United Automobiles and former president of the Federation of Automobile Dealers Association (FADA), expects sales to increase 5–7 per cent in 2026. “We expect Maruti to outperform the industry,” he said about the market leader.
M&M’s rise to No 2 from the fourth place last year is largely attributable to multiple launches over the past four years across petrol, diesel and electric powertrains in the fast-growing sport utility vehicle (SUV) segment, according to analysts. In 2025, it introduced two models — the five-door Thar Roxx and the XUV 3XO sub-compact SUV — alongside the BE 6 and XEV 9e electric SUVs.
Timely facelifts and refreshes of legacy models such as the Bolero and Scorpio have also supported sustained monthly volume, they said.
The Mumbai-based manufacturer’s ascent is underscored by the fact that it outsold Hyundai in registrations in 10 of the 12 months of 2025, according to Vahan data released by FADA.
A brokerage analyst said M&M’s sharper focus on design, pricing and premium features has driven consistent performance. “Unlike the past, they are focused and don’t want to be everywhere,” the analyst said, speaking on condition of anonymity.
By contrast, Hyundai has seen a relatively muted product launch cycle. The Exter micro-SUV, launched in July 2023, was its last new nameplate. “They continue to rely heavily on the Creta,” the analyst said.
Acknowledging intensifying competition, Hyundai earlier this year announced plans to launch 26 new models by 2029–30.
“They understand the market well and score better than Mahindra on margins. What they need is a faster expansion of the portfolio,” the analyst said.
Hyundai has set a target of 15 per cent market share by 2029–30, up from 13 per cent in 2025, signalling a sharper focus on profitability over volume.
The South Korean firm has also faced mounting pressure from Tata Motors.
