Mahindra & Mahindra’s (M&M) position as India’s second-largest carmaker, wrested from Hyundai Motor India just a year ago, is facing a strong challenge from cross-town rival Tata Motors Passenger Vehicles.
Mumbai-based Mahindra marked a key milestone as it ended financial year 2026 (FY26) as India's number two carmaker, selling more than 623,000 cars, an increase of about 22% over FY25. Tata Motors sold 601,000 units, registering a growth of about 15%.
But a closer look at data shows that Mahindra's grip on the number two spot has come under strain, as Tata Motors PV appears to have gained the most momentum since September when the government announced cuts to goods and services tax (GST) on a wide range of products to stimulate demand. GST on cars was reduced to 18% from 28% earlier.
According to Mint’s review of the government's Vahan portal data that records registration after a car is sold at a dealership, Tata Motors PV sold about 408,000 cars between September and March, higher than the 396,000 units sold by Mahindra and Mahindra. Hyundai Motor India sold about 367,000 cars in the same period, ranking fourth during the period.
Tata was at second spot in five of these seven months, while Hyundai and Mahindra stood at that position once each. Maruti Suzuki has retained its position as India’s top carmaker, maintaining a comfortable lead over rivals.
Tata’s momentum builds
“Our industry‑beating growth and emergence as the number two player in H2 in both wholesales and Vahan registrations reflect the strength of our strategy rather than a momentary upswing. Nexon was the top-selling car brand in H2FY26 and Punch joined it in top 2 SUV brands for Q4FY26,” a Tata Motors PV spokesperson told Mint.
“Our leadership in EVs, strong outperformance in CNG (compressed natural gas), ahead of industry growth in hatchbacks and growing popularity of the Sierra and Harrier demonstrate that our growth is anchored in products and powertrains that customers trust.”
Tata Motors’ wider portfolio of powertrains and products, which include CNG, EVs, petrol and diesel, is one of the key factors driving its momentum and putting pressure on Mahindra and Mahindra, experts said.
“They have a good portfolio now, including a strong EV portfolio,” Subhabrata Sengupta, partner at Avalon Consulting, said. “Issues with quality and service keep popping up. That said, they have an impressive portfolio of well-styled competent cars and that will help them stay in the running.”
Mahindra, which has steadily climbed the ranks, has consistently maintained its focus on leading in revenue market share, where it has outpaced rivals in most months of FY26.
“Our ambition has been to be the No. 1 SUV player by revenue and we are proud to have achieved that. We are equally humbled to be the No. 2 passenger vehicle company for FY26. Above all, our priority remains unchanged: to create products that truly wow our customers and we are delighted to see that coming to life," Rajesh Jejurikar, executive director & chief executive officer, auto and farm at M&M, told Mint.
New launches drive competition
Both the companies continue to roll out new products, which range from new nameplates, facelifts, and model updates to gain market share, with more than half a dozen launches planned between them.
Strong sales momentum has led analysts to turn bullish on both companies’ prospects.
“Our analysis shows Tata-PV and MM shall outperform among PVs,” analysts at Nuvama Institutional Equities wrote in a 30 March note.
Tata Motors PV models, like Tata Nexon and Tata Punch, have regularly featured in the top 10 best-selling cars in the country, according to industry data.
“Nexon has particularly helped because it is present in the compact SUV segment which has grown the most since GST cuts were introduced. The biggest reason is the presence of nearly all powertrains including CNG, EV, petrol and diesel, which has helped the company target a vast customer base,” a company executive aware of the company's sales performance said.
Moreover, new launches like Tata Sierra, which Tata Motors is heavily betting on to gain market share, has already seen 20,000 deliveries in the past three months.
Mahindra remains bullish on new launches, noting on Wednesday in statement that it closed the financial year with record-high sales.
Since the start of the calendar year, Mahindra’s shares have declined 19.68%, while those of Tata Motors PV have lost 17.45%. Nifty Auto index in the same period has fallen by 14.96%.