Earlier this year, Anand Mahindra, chairman of the Mahindra group, re-shared a photo of a Premier Padmini on X. In the photo, the 60s-era car was parked behind Mahindra’s technology-savvy BE6 electric SUV. The image depicted the progress that the Indian automotive industry had made.

Mahindra said that it was the Premier Padmini that was the first car he remembered riding, driven by his mother. He said she received it five years after booking. “That’s how long the waiting list was for a car in those days,” he said.

Decades later, Mahindra’s BE6 e-SUV has a waiting time of around two to six months based on the region and variant. Mahindra’s electric origin range of SUVs — BE6, XEV 9e, and XEV 9S — have clocked sales of 50,000 units in FY26, a year after deliveries started.

No small feat considering the hiccups the homegrown SUV maker faced in its first stint with electrics.

Mahindra has dislodged Hyundai from the second rank in the pecking order of passenger car manufacturers in terms of sales volumes and market share in FY26.

In retail, the carmaker has posted sales of 6.31 lakh units, garnering a market share of 13.42% with a second slot in the pecking order after Maruti Suzuki, while Hyundai has slipped to the fourth rank with a share of 12.29%. Tata Motors is pitched third with a share of 13.04%, according to the Federation of Automobile Dealers Associations of India.

In wholesales, the story is similar. Mahindra has held its second rank in the pecking order of carmakers with a market share of 14.77% edging out Hyundai to the third slot with a 13.04% share till February FY26. Tata Motors stands fourth with a share of 12.51%, according to the data from the Society of Indian Automobile Manufacturers (SIAM).

Hyundai had been the country’s second-largest car manufacturer after Maruti Suzuki since the rollout of its first iconic Santro hatchback in September 1998 from its Chennai facility. Mahindra has changed the market dynamics now.

Rajesh Jejurikar, CEO and executive director, Auto & Farm at Mahindra told mediapersons that the company had achieved its ambition to become the number one SUV player by revenue.

This is because Mahindra has the largest portfolio of around 13 SUVs, which carry a higher sticker price compared to smaller cars.

Mahindra's ascent marks a historic shift in India’s automotive landscape, as the automaker leverages a revitalised SUV portfolio to displace long-standing leaders like Hyundai.

Maintaining this momentum will require it to navigate aggressive competition, tightening emission norms, and the complex execution of its electric vehicles (EV) roadmap.

The Turnaround

In 2010, while Mahindra had the foresight to invest in Reva, a startup that launched India’s first EV, after visualising EVs as a future growth area, the market and ecosystem were not ready. The last of the early pure battery EVs of Mahindra, the e2oPlus, eventually sputtered out in mid-2019.

With Tata Motors, MG Motor and Hyundai taking the lead in EVs in the interregnum, Mahindra had to re-enter this market in 2025 with its electric origin SUVs. This was to take on competition and not be left behind in the EV race.

Automobiles as a category had evolved significantly by this time. Mahindra had also developed a completely new technology platform from the ground up. This was the electric origin architecture INGLO (Indian Global) powered by the Mahindra artificial intelligence architecture. The Reva team that had been built to develop the future electric vehicles was lost and so was the infrastructure to develop those products.

The Petrol-Diesel Dynamics

It was the new Thar, launched late 2020, that changed the brand image of Mahindra from the manufacturer of rugged SUVs to one that could also make lifestyle vehicles full of modern features. Developed after receiving customer feedback in 2016, Mahindra turned the existing clunky Thar off-roader with zero ride comfort to one that could be driven everywhere.

The company marketed the new Thar well. This further fueled growth in the lifestyle SUV segment. The Mahindra Scorpio N, the XUV700, Thar Roxx and XUV7XO that followed the footsteps of the new Thar became instant successes.

Since then, there has been no looking back for the automaker as its volumes have expanded with new products.

Puneet Gupta, director-automotive at S&P Global Mobility, said currently SUVs are the chief body type that are selling the most, and the Mahindra brand resonates with this segment.

Mahindra’s cars are mostly in the medium to large segments at a time when Indians are buying more SUVs than ever, with rising customer aspirations, easy financing, and wider roads and highways. Mahindra’s cars have improved a lot in quality and features, leading to a gain in market share.

According to Prajyot Sathe, research manager-mobility at Frost & Sullivan India, Mahindra pursued a very clear strategy of targeting the fastest growing SUV segment that suits Indian driving conditions.

In addition, its products have a large road presence and offer more advanced features in comparison to rival brands. Mahindra also has multiple variants for each model that are supported by competitive pricing, giving consumers more choice.

“Premium technology, emotional connect, and its presence across rural and urban markets have helped M&M gain a significant market share in the past few years,” said Sathe.

Sticking To What Works

An auto expert believes the management rejig in December 2019 also helped Mahindra to reorient its brand image and reinvent itself.

The total utility vehicle segment in FY26 till February was pegged at 66% of the passenger vehicle segment, according to SIAM.

For Mahindra, SUVs generated a 24.1% revenue market share in Q3FY26, according to the company.

While the average price of a Maruti car is pegged at around Rs 8 lakh, for a Mahindra vehicle, it is about Rs 13.5 lakh, generating a higher revenue.

Mahindra clocked its highest-ever sales volumes in SUVs in FY26 at 60,272 units, a YoY growth of 20% (over FY25).

A Mahindra dealer believes that the company’s success is primarily due to its focus on the customer’s feedback, the decision not to get into the small car and sedan segment, as its typical customer did not expect this vehicle from the company.

Instead, the company focused on its core strength, which was SUVs and benchmarked them for quality against the best (read Toyota). They also started investing heavily in design and R&D at their research centres in Chennai and the UK. That has paid off.

What Next?

The biggest challenge for Mahindra will now be sustaining this growth and its number two position in the industry.

Prathamesh Choudhary, principal, automotive practice, Arthur D’Little India, feels that Mahindra’s market position will depend on factors like capacity expansion, disciplined execution and continuous innovation. The new (Nagpur) plant and expanded Chennai R&D centre will help reduce waiting periods and accelerate product refresh cycles.

A strong product portfolio with a strengthened semi-urban penetration and an enhanced customer experience will also help sustain this momentum.

True to this tall ask, Mahindra is firing on all cylinders to up its capacities and product line in both internal combustion engine (ICE) and battery electric powertrains. It plans to roll out seven new ICE SUVs and five EVs by 2030.

The SUV maker is investing INR15000 crore in a greenfield facility for automotive and tractors at Nagpur in Maharashtra. This will be operational in CY2028 and will produce its four new NU_ IQ platform SUVs. The concept models had been revealed last year.

In addition, under Mahindra’s Vision 2027 plan, models like the Vision S and Vision T will start production at its existing Chakan plant next year.

Jejurikar has said that the company will add additional capacities of 6,000 to 7,000 units at its Chakan plant in Maharashtra in FY27 for both ICE and electric models. Two new refreshed ICE models are expected in the current CY. Hybrid models are also planned for ICE and electric trims in future.

But an important concern will be the cannibalisation equation of new products over current models. It will be a tough task to minimise its adverse effect on sales for Mahindra.

Mahindra will also be up against a fierce adversary, Hyundai, gunning to reclaim its lost stronghold. The South Korean carmaker is also investing Rs 45000 crore in its India operations, as announced last year. Hyundai will launch 30 new products by 2030, spanning seven brand new models and eight hybrids.

A key reason for Hyundai lagging behind Mahindra last year was the absence of brand-new nameplates that rev up fresh demand and volumes. This worked to Mahindra’s advantage. The lacunae in the hybrid segment also went against Hyundai.

Going forward, “pricing pressures, faster product cycles and feature wars could squeeze margins and test Mahindra’s differentiation with competition,” according to Choudhary.

Bottomline

Gupta believes that Mahindra will also focus more on compact SUVs and many other segments as the Indian market is witnessing growth across SUV segments.

But overdependence on diesel, which contributes almost 80% of Mahindra’s total product basket, could be a hurdle with the stricter emission norms — CAFÉ III — that the government plans to introduce, right around the corner.