Mahindra continued its strong run, maintaining its position as the second-largest carmaker in India after Maruti Suzuki. In May 2025, it sold 52,431 vehicles ,A 21% growth year-on-year bolstered by demand for its SUV lineup, including newer EV releases. TVS Motors also retained a leading position in the two-wheeler segment, adding to the performance momentum of homegrown brands.
Tata Motors Faces Slump
Domestic sales at Tata Motors dipped by approximately 11% year-on-year in May, falling to 41,557 units. The decline marked another challenging month, reflecting reduced demand for both passenger vehicles and EVs. Its total sales dropped to 70,187 units when combined with exports, intensifying investor concerns despite efforts to boost its EV portfolio.
Hyundai and Maruti Suzuki See Slowdown
Hyundai India’s sales contracted by about 11% year-on-year in May. The company slipped to the third position, lagging behind Mahindra. Meanwhile, Maruti Suzuki the industry leader reported modest declines in compact car and SUV segments, with an overall drop of around 5.5% in May.
Audi and Other Premium Players Struggle
Premium brands such as Audi also experienced a sales decline, with Audi witnessing around a 12% drop in May. This mirrors the wider slowdown observed across India’s auto market, where rising costs and regulatory changes continue to challenge consumer demand.
Toyota, Kia, MG Show Strong Gains
Contrasting the downturn, brands like Toyota, Kia, MG, and Skoda reported notable year-on-year growth in May, driven by rising SUV popularity. Toyota recorded a 16–22% rise, Kia posted a 14% increase, MG saw around 40% growth, and Skoda surged over 130%, benefiting from fresh model releases and export opportunities.
SUV-Driven Recovery
While Maruti Suzuki, Tata Motors, and Hyundai experienced dips, brands focusing on SUVs especially Mahindra and Toyota weathered the slowdown. Analysts expect the passenger vehicle market to grow 1–2% through March 2026, with sustained SUV demand and improved macroeconomic factors offering optimism.
Grab more recent updates on our WhatsApp Channel
