Synopsis– India before the 2000 had only a couple of automotive brands, namely Hindustan Motors and Premier Automobiles. But looking at 2025’s India we have a number of modern car manufacturers who are completing neck to neck to gain market share in one of the biggest automotive industries of the world. This article is going to list the best-selling car brands in India 2025.
The Indian automotive landscape continues its dynamic transformation even in 2025, being driven by shifting consumer preferences, EV adoption, and a wave of product launches. With tough competition, the market has given chance to a handful of car brands which are rapidly accelerating their growth, by outpacing industry leaders in both innovation and sales momentum. So, if you are eyeing the next biggest car brand, this article is going to let you explore through the latest and most up-to-date insights on the fastest growing car brands in India of this year.
Understanding the Growth
The Indian passenger vehicle market remains hyper-competitive and consolidated. The top six brands now control a staggering 93% of the market, with brands either climbing fast or slipping amid evolving buyer expectations. The year 2025 has witnessed-
- Increase in SUV and compact SUV popularity with urban and rural buyers.
- Surge in electric vehicle (EV) demand and improved infrastructure.
- Localization of production and cost reductions via strategic partnerships.
- Launch of tech-forward vehicles and models heavily loaded with features, across all price segments.
Leaders and Fast Movers of 2025
1. Mahindra and Mahindra
- Year-on-year (YoY) growth rate : 20% in July 2025
- Key growth drivers : The demand for fresher models(e.g., Thar Roxx, XUV 3XO facelift) and the Demand for rugged Sport Utility Vehicles (SUV), such as Scorpio and Thar,
- Current position: Consistently the second best in sales just behind Maruti Suzuki.
- Sales: 49,871 units(July 2025)
- Mahindra’s SUV focus and list of modern and new models propelled its growth, which allowed it to surpass Hyundai, and become the second-largest carmaker in India.
2. Skoda Auto
- YoY growth rate : 164% in July 2025
- Key growth drivers : New affordable and compact SUV models, such as Skoda Kylaq (3,377 units sold in July), accounted for the majority of sales.
- Key strategy : To target mass-market customers who have been historically untouched by Skoda’s premium car brand.
- Skoda has seen a significant jump in its sales, with the highest ever YoY growth in the top 10, which represents a momentous strategic shift, capitalizing on affordable SUVs, where it has gained mainstream acceptance.
3. MG Motor India
- Growth Rate: 46.1% year-on-year in July 2025.
- Key Drivers: Aggressive expansion in the electric vehicle segment, with top-selling electric model, MG Windsor.
- Market Move: Strategic Joint Venture with JSW Group boosted localization and supply chains.
- MG is the only major player with three electric cars among its best-sellers in this list as well as in the Indian automotive market, making it a key player in India’s EV space.
Also read: 6 Best Family Cars in India with Maximum Safety Features – See Which One Tops the List
4. Kia India
- Growth Rate: 7.9% YoY in July 2025.
- Product Play: Strong demand for tech-focused models like Seltos and Sonet.
- Kia has always been able to maintained a steady growth trajectory, cementing its foothold in the top six, and has witnessed sales all year round.
5. Toyota Kirloskar
- Growth Rate: 2.7% year-on-year in June 2025.
- Innovation: Cross-badged products through alliances, and advanced hybrid tech in models like the Urban Cruiser.
- Position: Holds the 5th spot in monthly sales rankings.
6. BMW Group (Luxury Segment Leader)
- Electric Vehicle Growth: BMW Group India saw a whopping 234% growth in its EV sales.
- Best-Selling Luxury EV: BMW iX1 Long Wheelbase.
- Switch in variants: 18% of all BMW Group cars sold in India are now electric.
| Brand | July 2025 Sales | YoY Growth (%) | Key Models | Segment Highlight |
| Mahindra | 49,871 | 20 | Scorpio, Thar, XUV 3XO | SUV |
| Skoda | 5,554 | 164.1 | Kylaq, Slavia, Kushaq | Compact SUV/Sedan |
| MG Motor | 6,678 | 46.1 | Windsor EV, Comet, ZS EV | Electric |
| Kia | 22,135 | 7.9 | Seltos, Sonet | Compact SUV |
| Toyota | 29,159 | 2.7 | Urban Cruiser, Innova, Glanza | Hybrid SUV/MPV |
| BMW Group | — | 234.0 (EVs) | iX1, i4, i7 | Luxury/Electric |
Brands Losing Momentum
Many automobile manufacturers (for example, – Maruti Suzuki, Hyundai, Tata Motors, Honda;) continue to sell the most units and dominate the automobile market but they have either declined in units sold or had inclined to slight growth this year. As an example, Hyundai saw a 10.3% YoY decline in July, and Tata closely followed them with an 11.6% decline. Consumers preferences are rapidly changing, it is clear there are much higher preferences for new competition in SUVs, EVs and since hatch backs and sedans can no longer differentiate themselves like they once had been able to do.
What’s Fuelling the Growth?
- SUV Boom: Homegrown brands like Mahindra leveraged India’s need for SUVs which are more affordable and built for daily tough use.
- Electric Wave: MG and BMW’s aggressive EV push resulted in urban buyers moving into green mobility.
- Localization and Alliances: Brands like MG and Skoda have cut costs and supply bottlenecks with strategic local partnerships.
- Product Innovation: Frequent model upgrades and India-first features such as connected tech and ADAS boosted differentiation.
How is it going to be in 2025
- More localized compact and affordable EVs on the horizon.
- Increase in tech integration with ADAS, and in-car connectivity becoming a norm in even the entry level cars.
- Ongoing churn among legacy and disruptor brands due to rapid changes in buyer’s preferences.
Conclusion
The fastest growing car brands in India in 2025, are developing fast by keeping in mind the everchanging demand and its dynamics, coming up with regular innovations and executing strategic partnership in order to always stay ahead in one of the largest automotive industries of the world. And If you are in the market looking for a new car, then these fast-rising brands offer a window into the future of Indian mobility, where SUVs, EVs, and feature packed vehicles are going to take the center stage.
Written by Adithya Menon
