The homegrown automaker posted 74,705 units in October 2025, maintaining its runner-up position while extending lead over Mahindra & Mahindra and Hyundai in passenger vehicle segment.
01 Nov 2025 | 10538 Views | By Angitha Suresh
Tata Motors has reinforced its position as India's second-largest passenger vehicle manufacturer in retail sales for October 2025, building on momentum from the previous month when it reclaimed this spot after an intense three-way battle with Mahindra & Mahindra and Hyundai Motor India.
Sales Performance Analysis
The Mumbai-based ...
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Tata Motors has reinforced its position as India's second-largest passenger vehicle manufacturer in retail sales for October 2025, building on momentum from the previous month when it reclaimed this spot after an intense three-way battle with Mahindra & Mahindra and Hyundai Motor India.
Sales Performance Analysis
The Mumbai-based automaker recorded 74,705 unit registrations during October according to Vahan registration data, maintaining the runner-up spot behind market leader Maruti Suzuki. This represents a dramatic turnaround from September's 41,151 units—an increase of 33,554 units or approximately 82 percent month-on-month, marking substantial progress in retail offtake during the festive season.
The October performance places Tata Motors comfortably ahead of both M&M (66,800 units) and Hyundai (65,045 units), extending the lead it first established in September when the competitive landscape shifted dramatically.
Much of the growth can be attributed to the discounting strategy employed by Maruti Suzuki and Tata Motors to drive sales during the post-GST and festive period this year. In fact, the two walked away with nearly 80% of the incremental volume seen in September and October this year compared to last year.
The September Turning Point
October's strong showing follows Tata's breakthrough in September 2025, when it registered 40,594 units to edge ahead of Mahindra's 37,015 units and Hyundai's 35,443 units, marking a notable realignment in the intensely competitive race for second position.
That September victory was particularly significant as it ended a pattern of volatility that had characterized much of 2025. Earlier in the year, Mahindra outpaced both Hyundai and Tata to emerge as the second-highest PV seller in April 2025, registering robust 25.1 percent year-on-year growth. Meanwhile, Hyundai had been holding the second position for the past decade until demand for homegrown passenger vehicles helped Mahindra and Tata significantly increase their sales.
Strengthening Market Position
In October, Tata Motors outsold M&M by 7,905 units—a significant reversal from September when M&M had led by 3,492 units. The company also extended its advantage over Hyundai, maintaining a 9,660-unit lead in October compared to a 5,339-unit advantage in September.
This sustained performance across two consecutive months suggests Tata's second-place position is becoming more entrenched rather than representing a temporary fluctuation in the highly competitive market.
GST Reform Impact
A critical catalyst for the recent surge has been the implementation of GST 2.0. The GST rate cut in September—which reduced taxes on smaller cars to 18 percent from 28 percent—enabled significant price reductions. For Tata's bestselling Nexon, this translated to savings of up to ₹1.55 lakh, with the company offering additional benefits worth around ₹45,000.
Tata received a record number of monthly bookings in September 2025, as the price cuts resulted in double the bookings in the latter half of the month. This booking momentum appears to have translated into the strong October delivery numbers, as it was the first full month of sales following the GST reduction.
Product Portfolio Performance
Tata Motors' compact cars including Nexon, Punch, and Tiago are performing strongly, with all three offered in both ICE and EV powertrains. The Nexon particularly stands out—in September it recorded over 22,500 units, the highest-ever sales for a Tata passenger vehicle in a single month.
In the electric vehicle segment, Tata continues to dominate with approximately 40.9 percent market share in the passenger EV space as of August 2025, demonstrating its successful early mover advantage in the electrification transition. The company's September EV sales jumped 96 percent year-on-year to 9,191 units, while CNG sales reached an all-time high of over 17,800 units.
The company's lineup spans multiple segments—from entry-level hatchbacks to mid-size SUVs like the Harrier and Safari, plus the recently launched Curvv, which is available in both ICE and EV versions.
Competitive Context
The battle for second place has intensified dramatically in 2025, ending Hyundai's decade-long hold on the position. Despite finishing third in September, Mahindra's performance remained impressive given its focused portfolio approach, as the company is currently selling only utility vehicles. In fact, Mahindra reported its highest-ever monthly wholesale sales of 56,233 units in September, indicating strong dealer demand.
For Hyundai Motor India, the September and October numbers represent continued challenges in maintaining its traditional second-place position after market leader Maruti Suzuki. The Korean manufacturer has seen its dominance eroded by the rising popularity of homegrown brands and their SUV-focused strategies.
Strategic Implications
The retail sales data from Vahan provides real-time vehicle registration information across India, offering insights into actual customer deliveries rather than wholesale dispatches to dealerships. This metric has gained importance as an indicator of genuine market demand and dealer network efficiency.
Tata Motors' two-month consecutive performance at number two suggests the company has effectively capitalized on several factors: the GST reforms, festive season demand, a diversified product portfolio spanning ICE, EV, and CNG powertrains, and strong execution in converting bookings into deliveries.
Looking Ahead
The October results demonstrate Tata Motors' ability to not only capture but sustain the second position during the critical festive period encompassing Dussehra and Diwali—traditionally the strongest sales window for India's automotive sector.
However, the competition remains fierce. Monthly variations in retail data can occur due to inventory management cycles, regional demand patterns, new product launches, and dealer stock positions. The company is also preparing to reintroduce the iconic Sierra nameplate, which could further boost its market position.
The sustainability of Tata's second-place standing will depend on continued product competitiveness, new model introductions, maintaining its EV leadership, and market conditions in the coming months. With Mahindra posting record wholesale numbers and Hyundai fighting to regain lost ground, the battle for India's number two passenger vehicle manufacturer position promises to remain one of the automotive industry's most closely watched contests.