A shift has emerged in India’s passenger vehicle market. For the first time, Mahindra & Mahindra has overtaken Hyundai Motor India to claim the second spot in quarterly sales. This development reflects evolving consumer preferences and diverging performances among India’s top carmakers.
Mahindra’s Surge & Market Share Jump
Mahindra reported dispatching 1,52,000 passenger vehicles in the domestic market during Q1 FY26, marking a 22.4% year-on-year rise. In the same period last year, it had sold around 1,24,000 units.
This growth came even as the overall passenger vehicle market shrank 1.3%, with industry-wide quarterly sales standing at approximately 10.1 lakh units. As a result, Mahindra’s market share rose from 12.1% to 15%.
Hyundai & Tata Motors Decline
In contrast, Hyundai reported a sharp fall in sales. Its volumes dropped 11.5% to 1,32,000 units in Q1 FY26, compared to 1,49,000 during the same quarter last year. Tata Motors also saw a dip, with deliveries falling 9.7% to about 1,29,000 units.
Both Hyundai and Tata were pushed to third and fourth positions, respectively. Notably, April figures showed Hyundai and Tata posting 11.6% and 5.1% year-on-year declines, while Mahindra registered a 28% increase in the same month.
Product Pipeline & Launch Gaps
Hyundai’s dependence on the Creta remained a concern. While still a strong performer, delays in major launches limited the brand’s ability to expand its share. A large chunk of Hyundai’s sales come solely from the Creta. Both Hyundai and Tata lacked the model freshness needed to counter Mahindra’s momentum.
Mahindra’s gains are closely tied to its product portfolio, which is composed fully of SUVs. Cars like the Thar, Scorpio, XUV 3X0 and XUV700 led the charge, benefiting from continued buyer preference for larger vehicles.
The company posted an 18% growth in SUV sales during June 2025, closing the quarter with record-high dispatches.
Conclusion
Mahindra’s rise to the second position highlights a market leaning increasingly toward SUVs and a growing tilt in consumer preferences. The change in rankings also points to a period of stagnation at Hyundai and Tata Motors.
As Q2 FY26 unfolds, all eyes will be on whether Mahindra can hold its ground. For competitors, the challenge lies in accelerating product cycles and regaining momentum in a market that is rewarding aggressive portfolios and consistent execution.
