With a sharp 21% surge in SUV sales, Mahindra leads the pack while others struggle
Mahindra & Mahindra reported a surprising 21% increase in SUV sales till now. This growth came at a time when the overall Indian car market was showing signs of slowdown. Major automakers like Maruti Suzuki, Hyundai, and Tata Motors recorded drops in sales due to weak consumer demand, rising vehicle costs, and market saturation in some segments. In contrast, Mahindra managed to stand out with consistent growth, becoming one of the top performers in the automobile sector.
The Overall Market Situation
The Indian auto industry saw lower growth in recent months. Rising fuel prices, tighter financing conditions, and changes in consumer preferences led to reduced purchases of smaller cars and sedans. Many car companies struggled to sell their existing stock. Hatchbacks and compact cars, which once dominated the market, lost popularity among buyers.
However, the SUV segment remained comparatively strong. People continued to prefer SUVs because of their size, comfort, high seating position, and better road presence. Among all the companies selling SUVs, Mahindra made the biggest gains.
Mahindra’s Performance Last Month
Mahindra sold 52,431 SUVs in the domestic market in May 2025. This was a 21% rise compared to the same month last year. Including exports, the total SUV sales reached 54,819 units. This strong performance helped Mahindra temporarily become the second-largest passenger vehicle seller in India, surpassing even Hyundai and Tata Motors.
Overall, Mahindra’s vehicle sales, including small trucks, three-wheelers, and exports, reached 84,110 units in May, a jump of 17% compared to the previous year.
Strong Performance Throughout the Year
Mahindra’s growth in May wasn’t a one-time event. It had shown strong performance throughout the financial year 2024–2025. During the entire year, the company sold over 5.5 lakh SUVs, registering around 20% annual growth. Even in the fourth quarter of the year, when many competitors struggled, Mahindra’s SUV sales rose by nearly 19%.
This steady increase is a result of smart planning, high production capacity, and strong customer demand for Mahindra’s SUV models.
Key Reasons Behind Mahindra’s Growth
Focused Product Lineup
Unlike other companies, Mahindra focuses almost entirely on SUVs and utility vehicles. It does not sell small hatchbacks or sedans. This focus helped the company take full advantage of the rising demand for SUVs. As customer preferences shifted toward bigger vehicles, Mahindra was well-positioned to meet that demand.
Popular SUV Models
Mahindra has introduced several SUV models that have become customer favorites. The XUV 3X0, launched in 2024, gained popularity for its stylish design, advanced features, sunroof, and safety options. The Thar, known for its rugged looks and off-road capability, also continued to attract a large fan base. New versions of the Thar, including five-door options, helped the brand stay in the spotlight.
These vehicles appealed to both city users and adventure enthusiasts. Their modern design, comfort, and brand trust made them top choices in their categories.
Early Steps in Electric Vehicles (EVs)
Mahindra has begun offering electric SUVs under its XUV and BE brands. While the EV market in India is still growing, Mahindra’s early entry has helped it build a strong foundation. It started deliveries of some EVs in early 2025 and plans to launch more by the end of the year. This move shows that the company is preparing for the future while still focusing on its best-selling gasoline and diesel vehicles.
Strong Export Growth
Exports also played a role in the company’s growth. In May, Mahindra exported over 3,600 vehicles, which was a 37% increase from the previous year. This shows that Mahindra’s SUVs are gaining popularity outside India as well. Expanding in international markets helps balance any slowdown in domestic demand.
Increased Production Capacity
To meet growing demand, Mahindra invested in increasing its production capacity. It plans to increase monthly SUV production by 50% by 2026. This means shorter waiting times for buyers and better availability across showrooms. A large investment plan of ₹27,000 crore has also been set aside to upgrade manufacturing plants and develop new technologies.
Comparison with Other Brands
Many other automakers continue to offer a wide range of vehicles—from hatchbacks to sedans to SUVs. This split focus makes it difficult to react quickly to sudden changes in demand. Mahindra, on the other hand, placed its entire focus on SUVs, which helped it grow faster.
Also, Mahindra concentrated more on mid-range and premium SUV buyers. While sales of cheaper small cars have fallen sharply, premium SUVs are still being purchased by customers who are less affected by inflation or interest rate changes.
Good Leadership and Clear Strategy
The company’s leadership has played a major role in its success. Mahindra’s top executives have communicated their focus on SUVs and electric vehicles. Their decisions on product development, investment in capacity, and expansion into EVs reflect a long-term vision. Investors and customers have responded positively to this clarity.
The company’s share price has also performed well in recent months, showing strong investor confidence.
External Factors That Helped
Several market conditions helped Mahindra’s growth:
SUV demand continued to grow as Indian roads and infrastructure improved.
People preferred cars with better ground clearance, safety, and space.
The Reserve Bank of India lowered interest rates earlier this year, making car loans slightly more affordable.
The government also introduced tax benefits for the middle class, boosting overall spending power.
All these factors helped maintain buyer interest in higher-priced vehicles like SUVs.
What Lies Ahead
Mahindra’s future growth depends on how well it manages upcoming challenges and opportunities. It has a strong pipeline of new models, including electric SUVs. If production continues without delays and the models meet customer expectations, the company can continue to grow.
However, competition is increasing. Other brands are also focusing on SUVs and EVs. New players from global markets are entering India with advanced technology and attractive pricing. Mahindra will need to stay innovative and responsive to customer needs.
Mahindra’s 21% rise in SUV sales in May 2025 stands out in a market where most companies are struggling. This success was made possible by a clear focus on SUVs, strong demand for its popular models, investment in production capacity, and early steps into the EV segment. While the overall car market is going through a slowdown, Mahindra’s ability to understand trends and act decisively has helped it grow rapidly and strengthen its position in the Indian auto industry.
