India’s passenger vehicle industry closed FY2026 (April 2025 – March 2026) on a strong note, clocking total sales of 46.83 Lakh units, reflecting a healthy 8.4% year-on-year (YoY) growth. The industry reflects a resilient economy, though a deeper look at the data reveals a significant reshuffling of the “Big Three” and a clear shift in consumer preference toward premium SUVs.
The Battle for No. 2: Mahindra Overtakes Tata and Hyundai
The most striking headline of FY2026 is Mahindra & Mahindra’s ascent to the second spot in the Indian market.
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Mahindra’s Surge: With a robust 19.7% growth, Mahindra sold 6,60,276 units, capturing a 14.1% market share. This was driven by its “SUV-only” strategy, with models like the Scorpio-N, XUV700, and the newly launched 7XO resonating with buyers.
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Tata Motors: Despite a healthy 14.1% growth and record sales of 6,31,387 units, Tata slipped to third place. While the Punch and Nexon remain top sellers, the intense competition in the mid-size SUV segment allowed Mahindra to edge ahead.
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Hyundai’s Drop: Previously the perennial No. 2, Hyundai saw a 2.3% decline in sales. Its market share dropped from 13.9% to 12.5%, signaling that even popular models like the Creta are facing pressure from domestic rivals and a maturing market.
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Maruti Suzuki continues to tower over the competition with 18.2 Lakh units sold. For the first time, Maruti’s market share has dipped below the 40% psychological barrier, ending the year at 38.9% (down from 40.8% in FY2025).
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Mahindra & Mahindra continued its SUV-led momentum with 19.7% growth, closing in at 6.6 Lakh units and gaining share to 14.1%.
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Tata Motors emerged as a strong gainer, posting over 14% growth to reach 6.31 lakh units, improving market share to 13.5%.
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Hyundai Motor India saw a 2.3% decline, with market share dropping from 13.9% to 12.6%.
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Toyota Kirloskar Motor delivered a standout performance with 18.6% growth, strengthening its position to 7.9% market share.
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Kia India maintained steady growth at 13.3%, reaching 2.89 lakh units and improving share to 6.2%.
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Skoda recorded a staggering 68.4% growth, the highest in the industry. The success of the Kylaq (their sub-4m SUV) and the updated Kushaq has breathed new life into the brand, increasing its market share to 1.6%.
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MG Motor India also posted a robust 17.3% growth, supported by EV and SUV demand.
FY2026 reinforced that while the Indian PV market continues to grow, competition is intensifying across all tiers. The rise of Mahindra and the explosive growth of Skoda suggest that Indian buyers are willing to pay more for safety, features, and “road presence.” As we head into FY2027, the focus will likely shift toward EV penetration and whether Maruti Suzuki can reclaim its lost territory with its upcoming electric SUV lineup.
Also refer FY2025 Car Sales here
