The Indian automotive market saw a major reshuffle in 2025, as Mahindra & Mahindra officially became the country’s second-largest car manufacturer. While Maruti Suzuki maintained its long-standing dominance at the top of the leaderboard, Mahindra’s surge in SUV sales allowed it to leapfrog both Hyundai and Tata Motors for the first time in an annual sales cycle. Based on government registration data through late December, the move marks a significant turning point for the industry as consumer preferences shift toward larger, more premium vehicles.
Maruti Suzuki Remains the Market Leader
Despite the intense competition, Maruti Suzuki remains the undisputed “king” of the Indian roads. The company continues to hold the number-one position by a wide margin, supported by its massive network and a diverse range of vehicles that appeal to budget-conscious buyers. While other brands have fought for the remaining spots on the podium, Maruti’s ability to maintain high volumes across both small cars and its newer SUV models has kept it firmly in the lead throughout 2025.
The Historic Rise of Mahindra
The biggest story of the year is Mahindra’s climb from fourth place in 2024 to second place in 2025. This is the first time the brand has finished a year ahead of both Hyundai and Tata Motors.
Key figures behind the move:
- Total Sales: Mahindra recorded approximately 5.81 lakh registrations in 2025, up from 4.90 lakh the previous year.
- Growth Rate: The brand saw an 18% increase in sales, making it the biggest gainer among the top 16 carmakers in India.
- Competitor Rankings: Tata Motors is expected to finish the year in third place (5.52 lakh units), followed closely by Hyundai in fourth (5.50 lakh units).
The Models Powering the Growth
Mahindra’s success is built almost entirely on its focus on SUVs. The brand has capitalized on the Indian buyer’s growing appetite for “commanding” road presence and rugged build quality.
- The Scorpio Family: The Scorpio-N and Scorpio Classic remain the top sellers, making up 28% of the brand’s total volume.
- The “Thar” Effect: Sales for the Thar brand grew by 55% this year. This was largely driven by the new five-door Thar Roxx, which now accounts for the majority of Thar sales.
- Rural Reliability: The Bolero remains a powerhouse in semi-urban and rural markets, contributing over 93,000 units to the total.
- Electric Expansion: Mahindra’s new “Born Electric” SUVs (like the BE 6 and XEV 9e) contributed about 7% of total sales, proving that the brand is successfully finding a foothold in the EV market.
Market implications
Mahindra’s rise to second place highlights the growing importance of SUVs in the Indian passenger vehicle market. With Hyundai slipping to fourth position, the latest rankings underline how sales performance is increasingly being shaped by demand for larger, feature-rich vehicles, rather than entry-level hatchbacks alone.
As competition intensifies in the SUV and electric vehicle segments, the battle for the second spot is expected to hinge on product depth, technology and the pace of electrification in the coming years.
