Mahindra overtakes Hyundai to become second-largest automaker

Mahindra and Mahindra takes over Hyundai’s spot and becomes the second-largest automobile manufacturer in India. This achievement is a significant milestone for Mahindra, which highlights the growing domestic dominance of the company in the automobile industry. The SUV segment of the company is thriving exceptionally in the Indian market.

Sales performance of Mahindra

Mahindra has recorded a steep increase in domestic sales in February 2025. The rise in sales of the SUV models has significantly contributed to the growth, marking year-on-year growth of 19%. Also, a notable growth in sales in both domestic and international markets is seen, reflecting an increase of 15% as compared to last year.

The company has launched several models yearly. The addition of the new SUV models in 2024 contributed to Mahindra’s demand. SUV models like Thar Roxx, XUV 3XO, and Bolero Neo Plus are some of the successful launches of the SUV segment.

Entering the electric vehicle (EV) market also provided opportunities for innovation and market expansion. Mahindra launched electric SUV models like BE6 and XEV 9e in the Indian market in 2024. In India, these models achieved widespread success and were regarded as excellent products. With premium features and innovative technology placed at a price point that struck rightly to the customers.

Factors contributing to Mahindra’s success

The diverse SUV portfolio of the company caters to numerous customer segments, which is boosting the market appeal. The continuous innovation, advanced features, and updates of the older models have worked wonders for Mahindra. These give Mahindra a competitive edge and resonate with the customer needs.

EV is a growing sector and Mahindra BE6 is a fantastic electric car at a starting price point of Rs. 18.9 lakhs which is much lower than what Tesla offers. The estimated price of a Tesla car is around Rs. 70 lakhs in India. Mahindra cracked the code to tap into the emerging EV market with BE6 which offers premium features at an exceptional budget. Hence, BE6 is sometimes referred as the Indian Tesla.

Hyundai’s Challenges

Hyundai’s launches in 2024 in the SUV segment were limited. Although the Creta is a renowned model in the mid-sized SUV range, that doesn’t suffice for the existence of the company solely. Hyundai couldn’t keep up with the product-launching pace of Mahindra. Hence, Hyundai’s sales have dropped to 4.93% domestically in February 2025.