Hyundai Motor India, which has long held the position of the second-largest car manufacturer in India, slipped to the fourth spot in February 2025, as per data from the Federation of Automobile Dealers Associations (FADA). The overall passenger vehicle (PV) sales witnessed a decline of 10.34 percent year-on-year, reflecting weak market sentiment and an excess inventory buildup among dealers. While Maruti Suzuki continued to dominate the market, Mahindra & Mahindra and Tata Motors moved ahead of Hyundai, intensifying the competition in the Indian car market.
Decline in Hyundai’s Sales and Market Share
According to the ET data, Hyundai Motor India sold 38,156 units in February 2025, significantly down from 47,540 units in the same month last year. The automaker’s market share dropped to 12.6 percent, compared to 14 percent in February 2024. The shift in rankings highlights the growing competition in the Indian car market, especially from domestic players like Mahindra & Mahindra and Tata Motors.
Mahindra & Mahindra climbed to the second position with 39,889 units sold, surpassing both Hyundai and Tata Motors. Tata Motors secured the third spot with 38,696 units, just 540 units ahead of Hyundai. Market leader Maruti Suzuki maintained its top position with 1.18 lakh units sold, despite also experiencing a decline in sales.
| Retail Sales | February 2025 | February 2024 | YoY % change |
| Maruti Suzuki | 1,18,149 | 1,33,135 | -11.2 |
| Mahindra & Mahindra | 39,889 | 39,725 | 0.41 |
| Tata Motors | 38,696 | 45,710 | -15.3 |
| Hyundai | 38,156 | 47,540 | -19.7 |
| Toyota Kirloskar | 21,561 | 20,584 | 4.74 |
| Kia India | 18,794 | 20,919 | -10.1 |
Passenger Vehicle Sales and Market Conditions
The overall passenger vehicle (PV) segment faced a slowdown in February, with total retail sales falling from 3.38 lakh units in February 2024 to 3.03 lakh units in February 2025. Industry analysts attribute this decline to weak consumer sentiment, increased competition, and high dealer inventories.
According to FADA President C S Vigneshwar, during the month, Dealers reported an excess inventory of 50-52 days, which is significantly higher than the ideal range. Many cited concerns about manufacturers pushing wholesale stock beyond actual market demand, leading to financial strain and a cautious approach to new stock intake.
Comparison of Sales Among Major Automakers
Maruti Suzuki: Continued to lead the market with a commanding 38.94 percent share, selling 1.18 lakh units despite a decline from January’s 2.11 lakh units. The company’s strong portfolio includes hatchbacks, sedans, SUVs, MPVs, CNG models, hybrids, and upcoming EVs, catering to diverse customer needs.
Mahindra & Mahindra: Emerged as a strong contender with 39,889 units sold, boosting its market share to 13.15 percent in February 2024. Mahindra’s strong SUV lineup, including the Scorpio and XUV700, contributed to its success.
Tata Motors: Secured the third position with 38,696 units sold by capturing a 12.75 percent market share. Despite a 9 percent drop in year-on-year sales. It offers a diverse portfolio of passenger cars, SUVs, EVs, and commercial vehicles, known for safety, innovation, and strong market presence in India and globally.
Hyundai: Witnessed a sharp drop, slipping to fourth place with 38,156 units by capturing a 12.58 percent market share. The brand’s SUV portfolio, including Creta and Venue, remained popular, but it faced increasing pressure from Mahindra and Tata.
Future Outlook for Hyundai and the Market
Despite the decline, industry experts believe that Hyundai has an opportunity to regain its position with upcoming product launches, including the much-anticipated electric Creta. The market is expected to show improvement in March due to fiscal year-end discounts, festive promotions, and increased demand.
Hyundai has invested in expanding production and electric vehicles, but to climb back up, it needs better marketing, competitive models, and improved inventory management. With Mahindra expanding and Tata focusing on safety and EVs, Hyundai faces tough competition. The next few months will decide if Hyundai can bounce back or if Indian brands will continue to lead.
Written by Sridhar J
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