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India’s Top Car Brands In 2025: Mahindra Rises As Hyundai Loses Ground
The year 2025 marked one of the best years for the Indian passenger vehicle market, witnessing strong demand and excellent growth. The revised GST 2.0 structure introduced during the festive season further boosted vehicle sales across segments. One of the key highlights of the year was Mahindra's rise to the number two position.
India's Top Car Brands In 2025
Maruti Suzuki: India's Undisputed Leader
India's largest car manufacturer, Maruti Suzuki, dominated the Indian car market with strong sales, especially in the entry-level hatchback segment. Sales also grew significantly in the highly competitive SUV category, particularly in the sub-4-metre segment.
Models like the Fronx and Brezza are performing exceptionally well in those categories. Maruti Suzuki also leads the hybrid SUV market, with their Grand Vitara being one of the most popular cars in the segment alongside the Urban Cruiser Hyryder.
Mahindra's Rise to No. 2
Mahindra is expected to finish 2025 as India's No. 2 carmaker, with more than 5.5 lakh unit sales. This will also be the first time Mahindra will overtake both Tata Motors and Hyundai Motor in overall annual sales.
Mahindra's strong ICE SUV lineup, combined with its expanding EV strategy, significantly boosted brand momentum. The company is emerging as a key player in India's electric market with models such as the BE.06, XEV 9e, and XEV 9s. Their ICE models, the XUV700, XUV 3XO, Thar, Thar Roxx, Scorpio-N, and Bolero series, continue to enjoy massive demand.
Tata Motors Set for Third
Tata Motors is expected to come close to Mahindra in overall sales and could finish in third position. Tata has already surpassed Hyundai in several monthly charts, thanks to its feature-rich offerings like the Tata Nexon, Punch, Harrier, and Safari.
Its latest launch, the Tata Sierra SUV, has received an overwhelming response from Indian consumers, securing over 70,000 bookings within just 24 hours. The iconic Sierra returns after decades, bringing a fresh, modern design, premium interiors, top-tier safety, and a feature-loaded cabin. Deliveries of this car are scheduled to begin by mid-January 2026.
Hyundai Loses Ground
Hyundai has slipped from its long-standing No. 2 position, as domestic brands Mahindra and Tata Motors have gained significant market share. For years, the South Korean manufacturer held the second spot behind Maruti Suzuki. Hyundai's Creta is the best-selling compact SUV in India, but it has lost ground in other categories, including Hatchbacks, sub-4-metre, premium, and EV.
In recent years, both Mahindra and Tata have built strong trust among buyers by offering safer and more feature-rich cars. However, Hyundai's electric Creta is also facing lower demand compared to EV offerings from Tata and Mahindra. Hyundai's loss is their gain in the market, and both brands seem to have capitalized on it very well, pushing the South Korean brand to fourth spot.
One positive is that Hyundai's new Venue facelift has received strong interest, and 2026 could be a comeback for the brand. Other key automakers in India include Toyota, Kia, Skoda, Honda, MG Motor, Volkswagen, Renault, Nissan, and Citroen.
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