Major Shake-Up in India’s Car Market: Hyundai May Slip to Fourth, Two Domestic Firms Set to Overtake

India, the world’s third-largest auto market, could witness a significant reshuffle in car sales rankings by the end of 2025. Hyundai Motor India, long holding the second spot, is expected to drop sharply as Mahindra & Mahindra (M&M) and Tata Motors surge ahead.

Changing Rankings in Auto Sales
According to registration data available on the government portal Vahan, Hyundai has consistently held the second position since January 2019. Maruti Suzuki remains the market leader. However, by the end of this year, Mahindra & Mahindra is projected to sell 557,524 units, taking the second spot, followed by Tata Motors with 541,365 units in third place. Hyundai Motor India’s sales are estimated at 520,834 units, pushing it to fourth place for the first time.

This includes registrations of electric vehicles (EVs), highlighting the growing diversity in the market. Analysts say this reshuffle reflects the dynamism and increasing competition within India’s passenger vehicle sector. Overall car sales in 2025 are expected to reach 4.6 million units, a 10.5% increase over last year and above early-year projections.

Domestic Automakers on the Rise
Vinkesh Gulati, Director of United Automobiles and former President of the Federation of Automobile Dealers Associations (FADA), predicts a further 5–7% growth in 2026, with Maruti continuing to outperform the industry. M&M’s strong performance is credited to its rapid expansion in the SUV segment, launching multiple petrol, diesel, and electric models in 2025, including the Thar Roxx and XUV 3XO, along with electric SUVs BE 6 and XEV 9e.

Hyundai’s Strategy and Challenges
In contrast, Hyundai’s product launch cycle has been relatively slow. Since the launch of the Exter micro-SUV in July 2023, the company has relied heavily on the Creta. To regain momentum amid rising competition, Hyundai plans to introduce 26 new models by 2029–30, targeting a 15% market share, up from 13% in 2025.

This anticipated shake-up underscores the fierce competition in India’s car market and the growing strength of domestic automakers, reshaping the landscape of one of the world’s fastest-growing auto sectors.