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Mahindra Outpaces Rivals with Electric SUV Surge in India
1 Aug
Summary
- Mahindra sales up 20% in July, rivals Hyundai and Tata down 10%
- Mahindra overtakes Hyundai as India's 2nd largest carmaker
- Tata leads in electric vehicle sales, but faces rising competition
As of August 1st, 2025, the Indian automotive market is experiencing a mixed performance, with one player standing out from the rest. Mahindra & Mahindra, the homegrown automaker, has reported a 20% year-on-year jump in sales of sports utility vehicles (SUVs) to dealers in July, driven by strong demand for its newer models and electric SUVs.
This surge in Mahindra's sales comes at a time when most of its rivals, including industry leaders Hyundai and Tata Motors, are struggling to grow their sales in the core urban segments amid a broader industry slowdown in the world's third-largest car market. Hyundai and Tata both saw their domestic sales slide by around 10% in July.
Mahindra's successful product launches over the past year have drawn customers away from Hyundai and Tata, allowing the company to leapfrog Hyundai and claim the second spot in the domestic car market, a position long held by the South Korean automaker.
While Tata Motors, the leader in electric vehicle (EV) sales in India, reported a 42% jump in EV sales volume to a record 7,124 units, the company has seen its market share slide sharply over the last year amid rising competition from Mahindra and Chinese SAIC Motor's Indian venture, JSW MG Motor.
As the industry gears up for the upcoming festive season, manufacturers are hoping for a pickup in demand, buoyed by factors like tax cuts and lower interest rates. However, for the fiscal year 2026, they expect industry-wide car sales to grow just 1%-2% on-year, compared to an industry forecast of 2% growth in 2025.
