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In a significant reshuffling of India’s passenger vehicle retail hierarchy, Hyundai Motor India has reclaimed the No. 2 position from Mahindra & Mahindra in July 2025 retail sales, marking the Korean automaker’s return to the second spot after spending several consecutive months in third place behind the SUV specialist.
According to the latest Federation of Automobile Dealers Associations (FADA) data released on August 7, 2025, Hyundai sold 43,009 units in July 2025, capturing 13.09% market share, while Mahindra & Mahindra slipped to third place with 42,207 units and a 12.84% market share.
The margin of victory was narrow – just 802 units – but significant enough to break Mahindra’s recent dominance in the runner-up position.
End of Mahindra’s Second-Place Streak
This marks the first time in recent months that Mahindra has lost its grip on the No. 2 position in retail sales. The SUV-focused automaker had been consistently ahead of Hyundai this year, benefiting from India’s sustained SUV boom and its strong portfolio of models including the Scorpio-N, XUV700, and Thar.
However, in July, Mahindra saw its passenger vehicle market share in retail sales decline to 12.8 percent from 14 percent in June, according to FADA data. Meanwhile, Hyundai, on the other hand, improved its market share to 13.2 percent from previous months, demonstrating the Korean brand’s recovery momentum.
Wholesale vs Retail Divergence
Interestingly, the retail numbers tell a different story from wholesale figures. Mahindra & Mahindra continued to lead in the number two spot in July wholesales. The company’s strong SUV portfolio aided in a 20% increase in July sales to 49,871 units, as against 41,623 units sold in the same period last year.
This divergence between wholesale dispatch and retail sales suggests potential inventory build-up at Mahindra dealerships, possibly indicating softer consumer demand despite the company’s production ramp-up.
The 20% wholesale growth not translating to retail leadership points to a disconnect between factory gate performance and actual customer purchases.
Meanwhile, two factors may have contributed to Mahindra’s retail performance in July. The first is the rural market challenge. Like other automakers, Mahindra faced headwinds from rural market weakness.
FADA data shows rural passenger vehicle demand was impacted by monsoon disruptions and crop-sowing activities, which traditionally affect SUV sales in semi-urban and rural markets where Mahindra has a strong presence.
The second may be inventory management. The gap between wholesale (49,871 units) and retail sales (42,207 units) suggests Mahindra dealers may have been managing inventory levels, potentially leading to slower retail push.
Is the SUV Boom Slowing?
The broader question emerging from Mahindra’s retail performance is whether India’s SUV market is showing signs of saturation or slowdown. Mahindra, which has been the primary beneficiary of India’s SUV wave, typically achieves close to 50,000 units in domestic sales.
In July, we achieved SUV sales of 49,871 units, a growth of 20%, according to Nalinikanth Gollagunta, CEO, Automotive Division, M&M Ltd.
In the event of an SUV slowdown, unlike Mahindra’s SUV-heavy lineup, Hyundai maintains a balanced portfolio across hatchbacks (i10, i20), sedans (Verna), and SUVs (Venue, Creta, Tucson), providing resilience against segment-specific downturns.
Hyundai’s traditional strength in urban markets helped cushion the impact of rural weakness that affected other manufacturers more severely.
Market Competition
The July 2025 passenger vehicle market saw an overall decline of 0.81% year-on-year, with total retail sales at 3,28,613 units. Market leader Maruti Suzuki maintained its dominance with 1,29,164 units (39.31% market share), while the battle for second place intensified among Hyundai, Mahindra, and Tata Motors.
Tata Motors, in fourth place with 40,486 units (12.32% market share), has also been gaining ground, particularly in the electric vehicle segment where it leads with models like the Tiago EV and Tigor EV.
Tata Motors also witnessed a market share decline to 11.7 percent from 12.3 percent in July, suggesting the competitive pressure is affecting all major players.
Festive Season Battle
With the crucial festive season approaching, the battle for the No. 2 position is likely to intensify. Mahindra’s strong product pipeline, including updates to popular models and its expanding electric vehicle portfolio, could help it regain lost ground.
Industry experts attribute this success to Mahindra’s focused SUV strategy, timely product updates, and competitive pricing. Looking Ahead With a strong product pipeline including updates to popular models like the XUV700, Scorpio N, and Thar, along with an expanding electric vehicle portfolio.
However, Hyundai’s return to form suggests the Korean automaker has successfully addressed the challenges that had relegated it to third place in recent months.
The company’s balanced approach across segments and strong urban presence could help it maintain the No. 2 position through the festive season.
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