Hyundai

Hyundai Overtakes Tata to Become India’s No.3 Car Brand in May 2025 Despite Sales Decline

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Hyundai
New Delhi – May 2025 brought a surprising shift in India’s competitive automobile landscape. Hyundai Motor India has reclaimed its position as the third-largest carmaker in the country, overtaking Tata Motors despite reporting a year-on-year dip in domestic sales. The reshuffle in rankings was triggered by a broader market slowdown and varying company performances across segments, highlighting the dynamic nature of India’s passenger vehicle industry.

Maruti Suzuki Holds Lead, But Faces Mild Pressure

Maruti Suzuki continued to dominate the Indian market with 1,35,962 passenger vehicles sold in May 2025. However, the company registered a 5.6% year-on-year decline, mainly attributed to sluggish demand for its entry-level and sub-compact car models. That said, Maruti saw a 1.3% growth in SUV and MPV segments, which helped limit the overall decline. Despite the dip, Maruti’s massive lead ensures it retains the top position comfortably.

Mahindra Strengthens No.2 Spot with Impressive SUV Growth

Mahindra & Mahindra further solidified its position as India’s second-largest carmaker. The company posted 21.3% year-on-year growth, selling 52,431 units in May. Its stronghold in the SUV segment—thanks to popular models like the XUV700, Scorpio-N, and Thar—continues to drive volumes, proving that its SUV-centric strategy is paying off handsomely.

Hyundai Climbs Back to Third Place

Hyundai Motor India may have posted a 10.8% year-on-year decline in domestic sales—recording 43,861 units—but that was still enough to overtake Tata Motors by a margin of 2,304 units. Compared to April 2025, Hyundai also saw a slight month-on-month dip. However, its export performance of 14,840 units helped boost total dispatches and reinforced its overall standing. While not a sales surge by any means, the stability of Hyundai’s numbers helped it regain lost ground in the rankings.

Tata Motors Slips to Fourth Despite EV Growth

Tata Motors slid down to fourth place with 41,557 vehicles sold, reflecting an 11% drop year-on-year and an 8.1% fall month-on-month. While Tata’s EV division grew by 2%, with 5,685 electric vehicles sold, this modest gain wasn’t enough to offset declines in its internal combustion engine (ICE) vehicle sales. Tata’s dip opened the door for Hyundai’s return to the podium.

Declines Across Multiple Brands

Several other automakers also reported disappointing numbers in May. Among the most affected:

  • Honda: Down 18.1% (3,950 units)

  • Volkswagen: Down 13% (2,848 units)

  • Renault: Down 32.5%

  • Nissan: Down 38.8%

  • Citroën: Down 35.3%

  • Jeep: Down 19.8% (only 276 units sold)

These declines point to a larger trend of market volatility, affected by factors like changing consumer demand, slower rural sales, and competitive pricing pressures.

Why Hyundai’s Strategy Worked

Hyundai’s resurgence to third place is the result of two key factors:

  1. Strong Export Performance: Hyundai’s consistent export strategy has provided a cushion against domestic fluctuations, ensuring overall output remains stable even when local sales dip.

  2. Tata’s ICE Weakness: With Tata’s conventional fuel segment struggling and EV growth tapering, the brand lost momentum, giving Hyundai an opening to reclaim its position with a narrow but crucial lead.

The Road Ahead

India’s automotive market is witnessing rapid shifts in consumer preferences and brand positions. With the festive season approaching and new launches lined up, brands will continue to battle for market share. For Hyundai, maintaining the No.3 spot may require stronger domestic growth, while Tata will likely look to strengthen its EV leadership and rebound in ICE segments.

Author Profile

Kuldeep Singh Chundawat
Kuldeep Singh Chundawat
My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.