Mahindra Emerges as India’s Second-Largest Carmaker in 2025, Driven by SUVs

The Indian automotive industry marked a significant milestone in calendar year 2025, with Maruti Suzuki India retaining its position as the undisputed market leader in passenger vehicle sales, registering approximately 17.50 lakh units. This performance solidified the company's dominance, driven by its extensive portfolio of affordable hatchbacks, sedans, and utility vehicles that continue to appeal to a broad consumer base across urban and rural markets. Maruti Suzuki's consistent focus on fuel efficiency, reliability, and widespread service networks has helped it maintain a commanding lead despite intensifying competition from domestic and international players.

Mahindra & Mahindra achieved a historic breakthrough by climbing to the second position in annual passenger vehicle sales, surpassing longtime rivals Hyundai Motor India and Tata Motors. According to government Vahan portal data up to December 25, 2025, Mahindra recorded around 5.81 lakh units, a notable jump from the previous year, powered by robust demand for its SUV lineup, including models like the Scorpio, Thar, and newer electric offerings such as the BE 6e and XEV 9e. This rise reflects Mahindra's strategic emphasis on utility vehicles, which now dominate the Indian market, as well as successful expansion into the premium and electric segments.

Tata Motors secured the third spot with approximately 5.52 lakh units, while Hyundai Motor India slipped to fourth with sales of about 5.50 lakh units. Mahindra's outperformance over these competitors highlights a broader shift in consumer preferences toward SUVs and utility vehicles, which accounted for a growing share of the overall passenger vehicle market in 2025. The company's focused portfolio, strong year-on-year growth in key models, and timely launches in the electric vehicle space contributed significantly to this achievement, marking the first time a homegrown SUV specialist has claimed the runner-up position in annual sales.

Also Read: Early 2026 SUV Launches: Five Upcoming SUVs in India with Major Upgrades, EV Tech

This reshuffling of rankings underscores evolving dynamics in India's passenger vehicle sector, where SUV demand has surged amid changing buyer priorities for space, safety, and versatility. While Maruti Suzuki continued to benefit from its mass-market strengths, Mahindra's ascent signals the growing influence of domestic manufacturers specializing in utility vehicles. As the industry closes 2025 on a high note, boosted by festive demand, GST reforms, and increasing EV adoption, these developments point to heightened competition and a more diverse market landscape in the coming years.

Also Read: Maruti Suzuki December 2025: Up to ₹62,000 Off on Swift, Brezza, Ertiga & More