Two of India's largest car manufacturers, Maruti Suzuki and Hyundai have witnessed their market shares dropping significantly in the first half of this financial year, between April and September. The combined market share of these two carmakers dropped to a 12-year low level in the H1 of this fiscal, as the new entrants gained ground in the Indian passenger vehicle market. This comes as a notable transformation in the Indian market as the dominance of long-standing carmakers has been declining whole new companies are finding a stronger foothold.

Research by Jefferies has revealed that the combined market share drop of Maruti Suzuki and Hyundai came highlighting a dynamic change in consumer preferences and competitive positioning in the Indian passenger vehicle market. The report further revealed that during the same period of this financial year, Mahindra and Toyota's market shares have climbed to an all-time high level. One of the key reasons why Mahindra and Toyota have been significant inroads amid the dominance of Maruti Suzuki and Hyundai are the rapidly rising popularity of SUVs in India and the slumping demand of small cars, which is a global phenomenon and the Indian market too is following the same trend.

Mahindra's market share in the first half of FY25 surged to an all-time high level, grabbing a 12.5 per cent stake in the Indian passenger vehicle sector. This market share surge was bolstered by increasing demand for SUVs, a segment where the OEM has a strong presence. Another homegrown car manufacturer Tata Motors' market share peaked at an 11-year high level, grabbing a 14 per cent stake in FY23, though it has slightly decreased to 13.3 per cent in the first half of FY25.

Q2 FY25 was challenging for Indian PV industry

The second quarter of this financial year was challenging for the Indian passenger vehicle industry, with overall wholesale volumes, including exports, registering a one per cent year-on-year decline. This trend indicates the Indian PV industry is facing some headwinds amid a rapidly evolving consumer mindset in the country. Consumer preferences have been shifting towards newer, feature-rich, and more versatile vehicles like SUVs, a segment where two homegrown OEMs Mahindra and Tata Motors have found success.

Read Also: 2025 Audi Q7 to launch in India on November 28. Here is what you need to know

HOW DID YOU LIKE THIS ARTICLE? CHOOSE YOUR EMOTICON !