Mahindra & Mahindra Overtakes Hyundai: A New Leader in India’s SUV-Dominated Auto Market

The Indian automobile industry is witnessing a significant shift in its power dynamics. Mahindra & Mahindra (M&M) has now surpassed Hyundai Motor India to claim the No. 2 spot in India’s passenger vehicle market. This marks a remarkable achievement for the homegrown automaker, which has capitalized on India’s booming SUV market to outpace its South Korean rival.

This transition signals a changing preference among Indian consumers, as SUVs continue to dominate the roads. While Hyundai has long been a strong contender in the Indian market, Mahindra’s strategic product portfolio and aggressive expansion have pushed it ahead in sales figures.

Let’s take a deep dive into how M&M achieved this milestone, what it means for the automotive industry, and what challenges lie ahead for both Mahindra and Hyundai.

M&M ’s Big Win: Sales Figures That Changed the Game

According to sales reports, M&M sold 50,420 SUVs in February 2025, reflecting a 19% year-on-year growth. In contrast, Hyundai Motor India reported 47,727 units sold in the same month, witnessing a decline from January’s 54,003 units.

This means that M&M now holds the second-largest market share in India’s passenger vehicle (PV) segment, after the industry leader, Maruti Suzuki.

Why is This Shift Significant?

• First time M&M has overtaken Hyundai in terms of monthly sales.
• Hyundai’s dominance in the SUV market is being challenged after years of ruling the segment with models like the Creta and Venue.
• SUVs are driving India’s automobile sales, and Mahindra’s all-SUV lineup is giving it a major edge.

Why M&M is Winning: Key Factors Behind Its Success

1. SUV-Centric Strategy

M&M has long been known for its SUVs and rugged vehicles. Over the years, it has refined its focus to become an SUV specialist. Unlike Hyundai, which offers a mix of hatchbacks, sedans, and SUVs, Mahindra has concentrated solely on the SUV segment, a category that is now dominating the Indian market.

2. Strong Product Lineup

Mahindra’s SUV lineup is one of the most diverse in the market, catering to different price points and customer preferences:

• XUV700 – A feature-packed, premium SUV competing with Hyundai’s Tucson and Creta.
• Scorpio-N – A modernized version of Mahindra’s legendary SUV, winning over both urban and rural consumers.
• Thar – The most popular lifestyle off-roader in India, with high demand across cities and adventure enthusiasts.
• XUV300 & Bolero Neo – Offering competitive choices in the compact SUV segment.

With this diverse range, M&M is ensuring that it captures all segments of SUV buyers.

3. Meeting Consumer Demand for SUVs

SUVs now account for more than 50% of total car sales in India. M&M has aligned itself perfectly with this trend, ensuring that most of its production capacity is dedicated to SUVs, unlike Hyundai, which still has a significant focus on hatchbacks and sedans.

4. Competitive Pricing & Feature-Rich Models

M&M has also aggressively priced its SUVs while offering best-in-class features such as:

• ADAS (Advanced Driver Assistance Systems) in XUV700.
• Best-in-class safety ratings, including 5-star NCAP ratings for models like the XUV300.
• Modern designs and powerful engines that appeal to the Indian audience.

These factors have boosted Mahindra’s sales, making it an attractive option over Hyundai.

Hyundai’s Struggles: What Went Wrong?

While Hyundai remains a strong player in India, some factors have slowed its momentum:

1. Over-Reliance on the Creta

The Hyundai Creta has been the best-selling SUV in India for years. However, Hyundai has struggled to create another SUV that matches its success.

Other Hyundai SUVs, such as:

• Venue (compact SUV) – Competes with Tata Nexon and Mahindra XUV300 but hasn’t gained as much traction.
• Alcazar (three-row SUV) – Faces tough competition from Mahindra’s Scorpio-N and XUV700.
• Tucson & Kona (premium SUVs) – Niche offerings with limited market share.

2. Limited Production Capacity

M&M has been expanding its production capacity aggressively, but Hyundai has faced supply chain issues that have restricted production and sales.

3. Fewer Innovations in the SUV Segment

While Hyundai continues to be a strong player in technology and design, M&M has been more aggressive with introducing new features, such as ADAS, powerful engines, and better off-road capabilities.

Industry Impact: What This Means for the Indian Automotive Market

This shift in rankings has broader implications for the Indian automobile industry:

1. SUV Market Growth – The dominance of Mahindra further cements the fact that SUVs are now the most preferred choice in India.
2. Pressure on Hyundai – Hyundai will need to rethink its strategy, particularly in the SUV segment, to regain lost ground.
3. Increased Competition – Other automakers, including Tata Motors and Kia, will likely intensify their SUV game to compete with Mahindra.

What’s Next for Mahindra and Hyundai?

Mahindra & Mahindra Next Moves

• Expanding production to meet demand – Models like Thar, XUV700, and Scorpio-N currently have long waiting periods due to high demand.
• New electric SUVs – Mahindra is focusing on EVs with upcoming launches under the “Born Electric” platform to compete with Hyundai’s IONIQ series.
• Global expansion – M&M is looking at exporting SUVs to new international markets.

Hyundai’s Comeback Strategy

• New launches in the SUV space – Hyundai is expected to introduce a new sub-compact SUV to compete with Tata Punch and Mahindra XUV300.
• Strengthening its EV portfolio – Hyundai’s IONIQ 5 and upcoming EVs could help it regain market share.
• Aggressive pricing and marketing – Hyundai may revise pricing strategies and offer better value propositions to attract customers back.

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