In 2025, significant changes occurred in the Indian passenger vehicle market. Mahindra & Mahindra secured the second position for the first time, while Tata Motors is surging past Hyundai to claim the third spot.  

2025 is drawing to a close. This year brings significant changes to India's passenger vehicle market. The competition for the second and third positions in the world's third-largest car market has completely shifted. This year, Mahindra & Mahindra (M&M) secured the second spot for the first time in a calendar year, while Tata Motors is closing in on Hyundai to take the third position. Let's look at the details.

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According to vehicle registration data up to December 25, 2025, Maruti Suzuki achieved sales of 1.75 million units. Mahindra & Mahindra sold 581,000 units, Tata sold 552,000 units, and Hyundai sold 550,000 units. In comparison, M&M's sales grew from 490,000 units in 2024 to 581,000 in 2025. Tata Motors also achieved moderate but steady growth, while Hyundai's sales declined.

Why are Mahindra and Tata growing?

There are clear reasons behind the success of Mahindra & Mahindra and Tata Motors. Both companies are focusing on SUVs. Their vehicles have a strong presence in rural, semi-urban, and urban markets. Both companies also have several electric models, which has given them a lead in the EV segment.

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For Mahindra, the Scorpio and Bolero played a major role in rural and semi-urban areas. In cities, the Scorpio-N, Thar Roxx, and XUV series supported sales. Additionally, the company's new electric SUVs, the BE 6 and 9e, also increased volume for the EV segment.

After a slow start to the year, Tata Motors made a strong comeback. The Tata Nexon and Punch continued to have strong demand. The launch of the Harrier EV maintained their leadership in the EV market. The Curvv gradually contributed to sales growth.

Now, with the Tata Sierra set to go on sale in January, along with the petrol versions of the Harrier and Safari and several new launches in the lineup, Tata's growth is expected to accelerate further.