Friends, there’s a new player speeding ahead on India’s roads—Mahindra! In February 2025, Mahindra overtook both Hyundai and Tata, shaking up the auto market. But can Mahindra truly claim the number two spot in India’s fiercely competitive car industry? For the past 15 years, Tata and Hyundai have held strong positions, but their grip seems to be slipping. In this article, we’ll unpack the full story—Mahindra’s strengths, Tata’s weaknesses, Hyundai’s strategies, and the market trends reshaping buyer preferences. Plus, if you’re thinking of buying a car, we’ve got some tailored suggestions for you. So, let’s hit the gas and dive in!
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The Auto Market’s 15-Year Journey and Latest Data
To understand this shift, let’s rewind. Back in 2010, India’s auto market had a clear hierarchy. Maruti Suzuki reigned supreme with a 50% market share, Hyundai held the number two spot at 18%, while Tata and Mahindra barely scraped into the top five—Tata at 6-7% and Mahindra under 5%. Fast forward to 2024, and the landscape shifted: Maruti’s share dropped to 42%, Hyundai stabilized at 15%, Tata surged to 13%, and Mahindra climbed to 12%.
India Auto Market Share: 2010 vs. 2024
Now, February 2025 data drops a bombshell—Mahindra sold 50,420 vehicles, edging out Hyundai’s 47,727 and Tata’s 46,435. This wasn’t a fluke. In January 2025, Mahindra moved 73,409 units (up 12.2% from last year), while Hyundai’s sales dipped 5.4% to 54,003, and Tata’s fell 7.3% to 78,159. So, how did Mahindra pull this off? The answer lies in the last five years, where they’ve zeroed in on the SUV segment—now 38% of the market, up from 25% in 2018. Let’s break it down.
Mahindra’s Strength: Riding the SUV Wave and Engine Innovation
Mahindra’s trump card? SUVs. Today, Indian buyers crave big, bold vehicles—SUV demand has soared to 38% of the market. People want high ground clearance and striking designs, not just for practicality but as status symbols. Park a Scorpio N or Thar anywhere, and heads turn. Mahindra caught this trend at the perfect time. In February 2025, the Scorpio N sold 13,618 units, while the XUV 3XO clocked 7,861 units—an 86% growth spurt.
February 2025 Car Sales in India
January 2025 Car Sales in India
Technologically, Mahindra’s engines have leveled up. The Scorpio N’s 2.0-liter turbo-petrol churns out 200 horsepower, and its diesel variant offers high torque for off-road thrills. The XUV700’s mStallion engine delivers smooth drives with top-notch build quality. Market insights show 49% of XUV300 sales and 35% of XUV700 sales come from petrol variants, signaling a shift in buyer preference toward petrol power. Plus, Mahindra’s sustainability cred shines—named among the top 1% of auto companies in the 2025 S&P Global Sustainability Yearbook. This blend of style, tech, and trust is propelling Mahindra forward.
Tata’s Weaknesses: EV Struggles and Reliability Woes
Tata’s journey from 2018 to 2023 was stellar—models like Nexon, Punch, and Tiago vaulted them into the top three. But February 2025 saw a 9% sales drop to 46,435 units. What’s holding them back? First, their engines feel unrefined. The Nexon’s 1.2-liter turbo-petrol packs power but draws complaints of vibration and noise. Diesel options lack polish too.
Sales Growth/Decline: January 2025 vs. January 2024
Second, reliability niggles persist. Users report issues like Nexon EV battery degradation after 2-3 years and delays in service center parts availability. Third, Tata’s heavy EV push is faltering—EV sales dropped 22% in February 2025. The Nexon EV and Punch EV promise 300 km range, but real-world drops after 50 km fuel range anxiety. Charging infrastructure lags too—despite Tata’s 2022 tie-up with Tata Power and Apollo Tyres for 150 stations, it’s not enough. Still, Tata leads in safety—Nexon and Punch boast 5-star Global NCAP ratings. But can safety alone save their rank?
Hyundai’s Position: Sophistication at a Cost
Hyundai held the number two spot for years, but it’s under pressure. February 2025 sales fell 4% to 47,727 units. Known for sophistication—think sleek designs and smooth drives—the Creta’s 1.5-liter turbo engine excels, backed by solid build quality. Yet, challenges loom.
Rise of SUVs in India: 2018 vs. 2025
Pricing is a hurdle. The Creta’s top variant hits 20 lakh, while Mahindra’s XUV700 offers more features at 24 lakh. Past engine issues—like the Grand i10’s 3-cylinder diesel (vibration and cylinder liner seizing, discontinued in 2022)—hurt trust. Safety lags too—the Grand i10 scored a 2-star Global NCAP rating, and Hyundai’s bias claims against NCAP suggest reluctance to improve. Their 2023 MG Motor India partnership brought connected car tech (e.g., Hindi voice assistants), but Hyundai needs bolder innovation to hold ground.
Market Trends and Consumer Insights
Why the SUV craze? India’s uneven roads demand high clearance, while buyers see cars as status symbols and family-friendly options (5-7 passengers). Hatchbacks, once 40.2% of the market in 2022, are fading. Meanwhile, EVs are rising—4.4 million registered in 2024, projected at 2.5 million in 2025. Yet, range anxiety and sparse charging stations remain hurdles.
Mahindra’s Top Performers: February 2025
Consumer priorities are shifting too. Deloitte’s 2025 Global Automotive Consumer Study shows 65% of Indian buyers value safety, performance, and status. While 50% drive daily, younger buyers (18-34) lean toward Mobility-as-a-Service (MaaS), favoring sharing over ownership. These trends are reshaping the game.
Car Buying Suggestions for You
Thinking of buying a car? Here’s what to consider:
- Status & Off-Roading: Go for Mahindra’s Scorpio N or XUV700—reliable engines, stellar build quality.
- Safety First: Tata’s Nexon or Punch (5-star NCAP), but check service networks.
- Sophistication: Hyundai’s Creta for comfort, though top variants stretch to 20 lakh.
- EV Options: Tata’s Nexon EV is affordable but risks range issues. Mahindra’s BE 6 and XEV 9e (over 30,000 bookings in Feb 2025) look promising.
- Budget-Friendly: Under 30 lakh, options grew 63% in 2024. For long-term, EVs with FAME scheme tax benefits could drop prices by 2030—just mind charging gaps.
Tata EV Sales Drop: February 2025
Mahindra XUV Petrol Variant Sales Contribution
What Should Hyundai and Tata Do?
Tata needs to refine engines, boost service reliability, and partner with the government for EV charging expansion. Hyundai must refresh its lineup beyond Creta, sharpen pricing, and prioritize safety upgrades.
India’s EV Market Growth
Conclusion: Who Will Rule the Road?
So, can Mahindra hold the number two spot, or will Tata and Hyundai strike back? Tell us in the comments! If you enjoyed this deep dive, like, subscribe, and stay tuned for more auto stories. Until next time—drive safe, friends! Namaste!
Also Read: India Road Network Development: Can Roads Fuel a $5 Trillion Economy?
