Tata Motors Overtakes Hyundai & Mahindra in Passenger Vehicle Sales, Leads India’s EV Market in 2025

The Indian automotive industry is witnessing a remarkable transformation, fuelled by rapid innovation, the rise of electric mobility, and changing consumer preferences. Amid this evolution, Tata Motors has emerged as a dominant force, surpassing long-standing competitors such as Hyundai and Mahindra & Mahindra (M&M) in the passenger vehicle (PV) segment. At the same time, Tata has widened its lead over JSW MG in the electric vehicle (EV) space, further cementing its position as a front-runner in India’s mobility future.

This achievement is not just about market share numbers—it reflects Tata Motors’ bold strategies, strong product portfolio, and its ability to align with India’s growing appetite for affordable yet technologically advanced cars. In this article, we will dive deep into the factors driving Tata’s rise, compare its performance with rivals, and explore what this means for the future of India’s PV and EV markets.

Table of Contents

Tata Motors’ Journey in the Passenger Vehicle Market

For years, Tata Motors was perceived as a value-driven brand with limited appeal among premium buyers. However, the company has undergone a strategic revival over the past decade. Its success story rests on four pillars:

Design Innovation – Modern styling introduced with the “Impact Design Language” has given Tata cars a strong road presence. Models like the Harrier, Nexon, and Altroz embody bold aesthetics.
Focus on Safety – Tata was among the first Indian automakers to score 5-star ratings in Global NCAP crash tests, making safety a core selling point.
Diversified Portfolio – From entry-level hatchbacks like the Tiago to SUVs like the Safari, Tata caters to multiple customer segments.
EV Leadership – By launching accessible EVs like the Nexon EV, Tata Motors positioned itself as a pioneer in India’s electric revolution.

These strategies have now translated into hard numbers, with Tata surpassing Hyundai and M&M to claim the No. 2 spot in India’s PV sales rankings.

Beating Hyundai: How Tata Pulled Ahead

Hyundai has long enjoyed its position as India’s second-largest carmaker after Maruti Suzuki. However, Tata Motors has steadily eroded this lead by capitalising on key market trends:

SUV Boom: With SUVs dominating Indian sales, Tata’s Nexon, Harrier, and Punch became bestsellers, outpacing Hyundai’s Creta and Venue in several months.
Strong Domestic Demand: Tata has better aligned its production and distribution networks to cater to Tier 2 and Tier 3 cities, where growth is accelerating.
Value Proposition: Customers are attracted by Tata’s blend of design, safety, and features at competitive pricing compared to Hyundai’s slightly premium positioning.

As a result, Tata Motors’ sales trajectory has consistently outpaced Hyundai in recent quarters.

Outrunning Mahindra & Mahindra

While Mahindra has seen a revival with models like the XUV700, Scorpio-N, and Thar, it continues to focus largely on SUVs. Tata, on the other hand, has balanced its lineup across hatchbacks, sedans, and SUVs.

Wider Product Range: Mahindra lacks presence in the hatchback and compact sedan categories, which still account for significant volumes in India. Tata’s Tiago and Tigor give it an edge.
Early EV Entry: Tata’s EV strategy, launched much earlier than Mahindra’s, has given it a strong head start. Mahindra’s Born Electric range is still in its early stages.
Consistency: While Mahindra has seen demand-supply mismatches due to semiconductor shortages and waiting periods, Tata has managed production more efficiently.

This broader base has enabled Tata to stay ahead of Mahindra despite the latter’s SUV successes.

Extending the EV Lead over JSW MG

The EV segment is where Tata Motors has created the most significant impact. With products like the Nexon EV, Tigor EV, Tiago EV, and the recently launched Punch EV, Tata dominates India’s EV landscape.

Meanwhile, JSW MG, the joint venture between JSW Group and MG Motor India, has been trying to gain ground with models like the ZS EV and Comet EV. However, Tata maintains a massive lead due to:

Affordability: Tata’s EVs are priced within the reach of the mass market, unlike MG’s relatively premium offerings.
Extensive Charging Ecosystem: Through its subsidiary Tata Power, the company has created a reliable EV charging network across India.
First-Mover Advantage: Tata EVs hit the market earlier, allowing the company to capture customer trust and loyalty.

According to the latest EV registration data, Tata continues to command over 70% of India’s EV market, leaving rivals like JSW MG far behind.

Factors Behind Tata Motors’ Success

1. Strong R&D and Localisation

Tata Motors leverages its Pune and UK design studios, while also ensuring high localisation in manufacturing. This keeps costs competitive and features relevant to Indian conditions.

2. Aggressive Pricing Strategy

Instead of chasing higher margins, Tata has focused on scale, ensuring that even entry-level buyers can aspire to own a feature-rich car.

3. Sustainability Push

From developing EVs to adopting green manufacturing processes, Tata positions itself as an eco-conscious brand—something increasingly important for modern buyers.

4. Customer-Centric Approach

The company frequently introduces special editions (Dark Edition, Camo Edition) and updates to maintain excitement among customers.

Impact on the Indian Auto Industry

Tata Motors’ rise is reshaping the dynamics of India’s car market:

Healthy Competition: Hyundai and Mahindra are being pushed to innovate faster and diversify portfolios.
EV Acceleration: Tata’s dominance has fast-tracked India’s EV adoption, encouraging other OEMs to invest in this space.
Market Diversification: Buyers now have more alternatives beyond the traditional Maruti-Hyundai duopoly, fostering a more competitive environment.

Challenges Ahead for Tata Motors

While the trajectory looks promising, challenges remain:

Global Competition: With brands like BYD, Tesla, and Kia eyeing the Indian EV market, Tata will need to guard its leadership.
After-Sales Service: Customer feedback often highlights gaps in Tata’s service experience compared to Hyundai.
Export Strategy: To sustain growth, Tata needs to replicate its domestic success in global markets, especially emerging economies.

Expert Insights

Industry analysts suggest that Tata’s success story is far from over. With plans to launch 10 new EVs by 2030, significant investments in battery technology, and the expansion of charging infrastructure, Tata Motors is positioning itself not just as India’s No. 2 carmaker but as a global EV contender.

Frequently Asked Questions (FAQs)

Q1. How did Tata Motors surpass Hyundai in PV sales?
Tata capitalised on the SUV boom, launched feature-rich models at competitive prices, and built a reputation for safety, enabling it to edge past Hyundai in sales volumes.

Q2. What is Tata’s market share in the EV space?
As of 2025, Tata Motors controls more than 70% of India’s EV market, thanks to models like Nexon EV, Tiago EV, and Punch EV.

Q3. How does Tata compare to Mahindra in SUVs?
While Mahindra dominates lifestyle SUVs, Tata has a more balanced lineup across hatchbacks, sedans, and SUVs, giving it broader appeal.

Q4. What gives Tata an edge over JSW MG in EVs?
Tata’s affordability, first-mover advantage, and wide charging network via Tata Power ensure a strong lead over JSW MG.

Q5. Will Tata Motors challenge Maruti Suzuki for the No. 1 spot?
Though Maruti maintains a sizeable lead, Tata’s rising momentum, especially in EVs, positions it as the most likely challenger in the coming years.

Conclusion

Tata Motors’ journey from being a value-driven brand to becoming India’s No. 2 passenger vehicle manufacturer and the undisputed leader in EVs is a testament to strategic vision and execution. By outpacing Hyundai and Mahindra in PVs and leaving JSW MG far behind in EV registrations, Tata has proven that Indian automakers can compete at the highest levels.

As the industry shifts towards electrification and sustainable mobility, Tata Motors is not just keeping pace—it is setting the pace. The next few years will be crucial in determining whether Tata can challenge Maruti Suzuki for the crown, but one thing is clear: Tata Motors is driving India’s automotive future forward.