At the heart of this transformation lies a defining story: the rise of homegrown brands, led by Mahindra & Mahindra and Tata Motors. Not only have they challenged global automakers, but they have also fundamentally changed the way vehicles are designed, launched, marketed and emotionally positioned in India.
The SUV as a psychological upgradeThe rise of SUVs in India is not just about ground clearance or body styles. It’s about psychology. Today’s buyer seeks presence, security, digital sophistication and a sense of personal expression. Large touchscreens, connected features, over-the-air updates and bold design elements are just as important as ride quality or fuel economy. The vehicle is no longer just transportation; it is an extension of identity.
This shift has favored brands that intuitively understand Indian conditions and can translate that insight into products that feel confident rather than compromised. As Avik Chattopadhyay, founder of brand consultancy Expereal, puts it, Tata and Mahindra’s current success is not just ‘product-led’, but more importantly, it is ‘psychographically led’.
“Brands today are catering to a specific mindset, and not just price points,” notes Chattopadhyay. Mahindra’s bold, almost confrontational design language resonates strongly with buyers between the ages of 25 and 40: urban, upwardly mobile consumers who want their car to make a statement. Tata Motors, on the other hand, appeals to a broader, more harmonized sensibility – modern and responsible rather than overtly aggressive. This divergence is not accidental. It reflects a deeper segmentation of the Indian car market, where emotional resonance is increasingly becoming more important than mechanical sameness.
CY’25: When the balance of power shifted
Calendar year 2025 marked a clear turning point. According to the Federation of Automobile Dealers Associations (FADA), Mahindra & Mahindra emerged as the biggest beneficiary of the SUV wave, selling 5.93 lakh vehicles, up from 4.93 lakh in 2024. Its market share rose from 12.08% to 13.25%, moving it from fourth to second in the passenger car rankings.
Tata Motors followed closely and grew volumes from 5.38 lakh to 5.68 lakh units. Although market share declined marginally, Tata retained tremendous relevance, especially as India’s undisputed leader in electric passenger cars.
The real shock came from Hyundai Motor India. Volumes stagnated at around 5.60 lakh units, marginally lower than last year, resulting in market share erosion from 13.76% to 12.50%. For the first time in more than twenty years, Hyundai dropped to fourth place. Even Maruti Suzuki, the market leader, was not immune. While volumes rose from 16.42 lakh to 17.86 lakh units, market share fell from 40.24% to 39.91%, highlighting that rivals were growing faster in the higher-end SUV segments.
Toyota Kirloskar Motor stood out as an exception among global players, with volume growth from 2.61 lakh to 3.21 lakh units. Its performance confirmed an enduring truth about India: execution, reliability and trust in after-sales still matter.
Underscoring the increasing competitive intensity, UV market shares (see the chart) are steadily shifting rather than remaining concentrated. While Maruti is the UV market leader and M&M has been gaining market share over time, Tata and Hyundai have seen relative stagnation, and Toyota’s gradual rise signals growing pressure in the mid- and lower-end segments.
Mahindra: reinvention at scale
Mahindra’s rise was not the result of a single blockbuster. It was a multi-year, tightly ordered strategy that started around 2021 and steadily worsened.
“What worked for us in 2025 was that everything came together,” he said Rajesh JejurikarCEO (Chief Executive Officer) of Auto & Agriculture Sectors, Mahindra & Mahindra. “We took full advantage of new launches, innovations and strong core brands that continued to perform.”
Products like the Thar, Scorpio-N and XUV700 were not just commercially successful: they redefined their segments. Even older models like the Bolero benefited from timely, minor updates that reignited customer interest. From a brand perspective, Mahindra’s transformation goes deeper than just products. As Chattopadhyaya notes, the company underwent a holistic identity overhaul: a new logo, a new brand language and a new design confidence. “Even if the logo hadn’t changed, the products would have worked,” he says. “But together it meant a bigger journey.” Mahindra’s current design is unapologetically bold, ‘in your face’, as Chattopadhyaya describes it. That boldness resonates strongly with a generation that values differentiation over conformity, even if it means tolerating imperfect service experiences.
Marketing as momentum, not as a moment
Equally transformative was Mahindra’s approach to marketing. Traditional one-day launches have been replaced by digital, always-on campaigns: teasers, influencer engagement, phased reveals and ongoing online conversations.
Naming strategies have reinforced this shift. The decision to introduce sub-brands like the XUV 7XO marked a meaningful technological change rather than cosmetic updates. “It had to feel like a significant upgrade,” Jejurikar explains. This ongoing buzz cycle has kept Mahindra top-of-mind in an increasingly crowded SUV market.
Tata Motors: Driving Aspiration
The revival of Tata Motors has followed a different but equally strategic path. While Mahindra thrives on performance and attitude, Tata focuses on democratizing ambitions: making SUVs and EVs (electric vehicles) accessible without compromising safety or content.
“2025 was a year of intense launches for us,” says Shailesh ChandraMD and CEO of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility. “The post-GST (goods and services tax) disruptions in the second half really turned the momentum around.” The Punch is an example of Tata’s philosophy. Positioned as a micro SUV, it created a new segment by offering SUV-like confidence at hatchback prices, while becoming the first five-star car in its category.
Tata’s EV leadership is even more important. With over 2.5 lakh cumulative EV sales and the Nexon EV crossing one lakh units, Tata has normalized electric mobility for Indian buyers. Larger EVs like the Harrier EV indicate a move up the value chain.
But as Chattopadhyaya points out, Tata’s challenge lies in brand sharpness. The design language is modern and harmonious, but lacks the aggressive edge that currently excites younger buyers. The upcoming Sierra could bring freshness, but it may not be enough to redefine the entire portfolio.
EVs, motorsport and the new brawl
The rivalry between Mahindra and Tata has gone beyond engines and mileage to electric platforms, software-defined vehicles and motorsport credibility. Mahindra’s involvement in Formula E and Tata’s global racing exposure are no longer symbolic: they feed directly into the product stories. Emotion is more important than ever in electric cars, where rational arguments alone rarely close the sale.
The figures confirm this strategy. Mahindra’s These are regular volumes, not experiments.
What’s holding them back
Despite the momentum, challenges remain. After-sales service remains a weak spot for both Tata and Mahindra. Online forums are filled with inconsistent ownership experiences, and multinational benchmarks – especially Toyota’s – remain daunting. Still, Chattopadhyaya notes that today’s buyer group is more forgiving. These are consumers who might also choose Volkswagen or Citroën; brands known more for their personality than their impeccable service. Expression, not perfection, is the trade-off.
Maruti and Hyundai: in transition
According to Ravi Bhatia, president and managing director of JATO Dynamics, the rise of Tata and Mahindra does not mean the fall of Maruti and Hyundai – it signals a transition. Maruti and Hyundai still dominate in reliability, cost-efficiency, service range and resale value. Maruti’s 4,500+ service points and Hyundai’s strong performance in used cars remain formidable strengths.
However, as buyers increasingly ‘trade up’, ambition and emotional differentiation become increasingly important. Tata and Mahindra have adapted more quickly to this new definition of value. “The real story is not about winners versus losers,” argues Bhatia. “It’s about who has adapted the fastest.”
Beyond 2025: the way forward
The excitement shows no signs of fading. Mahindra started 2026 with 90,000 bookings for the XUV 7XO and XEV 9S, worth ₹20,500 crore. Tata Motors received 70,000 day-one bookings for the Sierra. There will be cancellations, but the signal is unmistakable: Indian buyers are emotionally invested. The Indian SUV market no longer follows global trends but defines its own. The real test now lies in sustainability: quality, service and trust in the long term. The race has changed track. And for the first time, homegrown Indian brands are setting the pace, not chasing it.
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