The company edged ahead in September retail sales, reclaiming second place as India’s auto rankings shift amid intense competition.
01 Oct 2025 | 12726 Views | By Shristi Ohri
Tata Motors has again emerged as a second-place winner in September 2025 retail sales, outpacing both Mahindra & Mahindra and Hyundai Motor India with 40,594 units sold, according to the Vahan data for the month.
The September figures, which exclude data from Telangana, reveal Tata Motors' strong performance ahead ...
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Tata Motors has again emerged as a second-place winner in September 2025 retail sales, outpacing both Mahindra & Mahindra and Hyundai Motor India with 40,594 units sold, according to the Vahan data for the month.
The September figures, which exclude data from Telangana, reveal Tata Motors' strong performance ahead of Mahindra's 37,015 units and Hyundai's 35,443 units, marking a notable realignment in the intensely competitive race for the second position in India's automotive retail market.
As for wholesales, the picture is yet to be fully clear as Tata Motors is yet to report the shipments. As for those that have, the month saw strong dispatches for Mahindra, with the company reporting a record in terms of wholesales at over 56,000 units, much of it because of pent up demand from August. Similarly, Hyundai Motor India Limited (HMIL) reported domestic wholesale sales of 51,547 units in September 2025, marking a marginal 0.9% increase over the 51,101 units sold in September 2024. The wholesale number also signals a 17% improvement from August's 44,001 units, suggesting that festive season demand is beginning to materialize at the dealer sales level.
Persisting Weakness
The latest auto retail trends show a significant month-on-month decline in the sales of Hyundai in India, as there is an intense battle going on between Hyundai, Tata Motors and Mahindra to capture the number two position in the list of top car makers in India. Hyundai has been holding this position for the past decade; however, the rise in demand for homegrown passenger vehicles helped Mahindra and Tata to significantly increase their sales.
The September performance represents a continuation of the volatility seen throughout 2025, where the traditional pecking order has been repeatedly challenged. Earlier this year, Mahindra outpaced both Hyundai Motor India and Tata Motors to emerge as the second-highest PV seller in April 2025, registering a robust 25.1 per cent YoY growth.
Tata Motors' strong showing in September, despite GST uncertainties, could be due to its dual approach with both internal combustion engine and electric vehicle offerings. Tata Motors compact cars including Nexon, Punch and Tiago are doing great business, as all three are offered with ICE and EV powertrains. The company is also preparing to reintroduce the iconic Sierra nameplate, which could further boost its market position.
In the electric vehicle segment specifically, Tata continues to dominate with approximately 40.9% market share in the passenger EV space as of August 2025, demonstrating its successful early mover advantage in the electrification transition.
Despite finishing third in September, Mahindra's performance remains impressive given its focused portfolio approach. Mahindra is currently selling only utility vehicles.
For Hyundai Motor India, the September numbers represent continued challenges in maintaining its traditional second-place position. The company's 35,443 units mark a significant shift from its decade-long hold on the number two spot after market leader Maruti Suzuki.
Hyundai Motor India clocked retail sales of 38,156 units in February, a dip compared with February last year, with the automaker's market share declining to 12.58 per cent last month as compared with 14.05 per cent market share in year-ago period.
Despite strong performers like the Creta and Venue, Hyundai has struggled to maintain its momentum against increasingly competitive domestic manufacturers who have better adapted to evolving Indian consumer preferences.
Market Implications
The September retail data underscores the fundamental shifts occurring in India's automotive landscape. The rise of domestic manufacturers like Tata and Mahindra reflects changing consumer preferences toward locally developed products that cater specifically to Indian market needs, from SUV body styles to affordable electric vehicles.
Industry experts note that this three-way competition for second place is likely to intensify further as all three manufacturers have significant product launches planned for the remainder of 2025 and early 2026. Tata's Sierra relaunch, Mahindra's expanding electric portfolio, and Hyundai's efforts to regain market share through new model introductions will keep the competition fierce.
The battle for market position extends beyond mere bragging rights – it influences dealer confidence, consumer perception, and investment decisions. As the Indian automotive market continues its evolution toward electrification and SUV dominance, the company that best aligns with these trends while maintaining competitive pricing and strong dealer networks will likely emerge as the consistent number two player.
With festival season sales data yet to be fully accounted for and new model launches on the horizon, the final quarter of 2025 promises to be crucial in determining whether this September reshuffling represents a temporary fluctuation or a more permanent realignment of India's automotive hierarchy.