Hyundai slips to fourth as Mahindra and Tata surge in India PV market FY26

Hyundai Motor India’s long-standing position among the top three passenger vehicle manufacturers in the country has been disrupted, with the company slipping to fourth place in FY2025-26. Annual domestic sales data confirms that both Mahindra & Mahindra and Tata Motors have overtaken Hyundai, reshaping the competitive landscape of the Indian automotive market. While Maruti Suzuki continues to dominate the segment, Hyundai’s decline marks a notable shift after years of stable performance in the top tier.

FY26 Performance Highlights Across Key Players

Mahindra recorded domestic sales of 6,60,276 units in FY26, reflecting a 20% increase compared to the previous year. Tata Motors followed closely with 6,31,387 units, registering a 14% growth. In contrast, Hyundai reported a decline of 2.3%, with total domestic volumes falling to 5,84,906 units. This made Hyundai the only manufacturer among the top four to experience negative growth during the fiscal year, highlighting emerging structural challenges in its domestic strategy.

Contrasting Growth Strategies Across Automakers

Mahindra’s performance has been driven entirely by its SUV-focused portfolio, with strong demand for models such as the Scorpio-N and XUV700 sustaining growth momentum. The company’s singular focus on SUVs aligns closely with the broader shift in consumer preference toward this body style in India. Meanwhile, Tata Motors has adopted a diversified strategy, leveraging hatchbacks, SUVs, CNG models, and electric vehicles to expand its market presence.

Tata’s electric vehicle segment stood out, with sales rising 43% year-on-year to over 92,000 units, reinforcing its leadership in the EV passenger vehicle space. Additionally, CNG volumes crossed 1.7 lakh units, while SUVs like Nexon and Punch contributed significantly to overall growth. Hyundai, despite having a wide-ranging portfolio, has struggled to convert this diversity into volume growth in a market increasingly dominated by SUVs.

Q4 FY26 Trends Signal Changing Momentum

The final quarter of FY26 further highlighted the divergence in performance among the three automakers. Tata Motors emerged as the top performer in Q4 with domestic sales of 1,98,743 units, marking a sharp 36% increase year-on-year. Mahindra followed with 1,83,800 units, while Hyundai posted 1,66,578 units despite achieving its highest-ever quarterly domestic sales figure.

Monthly performance in March reinforced this trend, with Tata leading sales among the three manufacturers. The narrowing annual gap between Mahindra and Tata, combined with Tata’s strong second-half acceleration, indicates that competition for the second position is likely to intensify in the coming fiscal year.

Outlook for FY27 and Competitive Dynamics

Looking ahead, Tata Motors is entering FY27 with strong momentum supported by new product launches and a multi-powertrain approach. Mahindra continues to build on its SUV dominance, with upcoming models expected to sustain demand. Hyundai, however, faces a more challenging path as it seeks to regain lost ground through product upgrades and improved domestic focus.

While Hyundai maintains leadership in exports, its domestic slowdown suggests a need for sharper alignment with evolving market trends. With both Mahindra and Tata expanding rapidly, the competitive intensity in India’s passenger vehicle segment is expected to remain high, making FY27 a critical year for reshaping market positions.

Frequently Asked Questions

Why did Hyundai drop to fourth position in India’s PV market in FY26?
Hyundai slipped to fourth place due to declining domestic sales and slower growth compared to competitors like Mahindra and Tata Motors. While rivals benefited from strong SUV demand and EV expansion, Hyundai’s diversified portfolio failed to capture sufficient market momentum. The increasing dominance of SUVs in India’s passenger vehicle market exposed gaps in Hyundai’s strategy, leading to reduced volumes and a fall in rankings despite maintaining strong export performance.