India Tata Motors has regained second place in the Indian passenger vehicle market, overtaking Mahindra and Hyundai in September 2025 passenger vehicle retail sales. Vahan registration data revealed that the company sold 40,068 units compared to 37,451 units sold by Mahindra and 35,470 units sold by Hyundai. This has been accomplished before a key season, the festive season, and a number of future products to be launched.
The sales statistics of September show severe market redrawing
The Vahan data released in September 2025 has shown Tata Motors winning the second place in sales in the retail sales with the sale of 40,594 units compared to the second and third placing of Mahindra and Mahindra and Hyundai Motor India with 30,987 and 35,215 units respectively. The September records that do not include September Telangana figures indicate that Tata Motors is performing well ahead of Mahindra and Hyundai, with their figures of 37,015 units and 35,443 units, respectively.
The Vahan registration data shows that Maruti Suzuki maintained the leadership position, but its volumes declined and reached 1,22,785 units in September against 1,30,242 units in August. The second oldest in the market kept falling to 35,470 units against 45,686 of the prior month, Hyundai Motor India. The precipitous fall enabled Tata Motors to compress its position among the top three, with the number of registrations growing to 40,068 consolidated in September and against 37,988 in August.
The presence of the electric vehicle segment carries the competitive advantage of Tata
September was marked by the continued demand for SUVs and electrics by Tata Motors. The company registered a total of 6,083 EVs, and Mahindra registered 3,041 EVs. It means that despite a more general slowdown, there is a slow but steady increase in the transition to electric mobility. Tata remains a leader in the electric car market in the electric vehicle industry in particular, with around 40.9 percent of the passenger EV market share as of August 2025.
Hyundai is struggling to protect its traditional position like never before
According to the recent trends in the auto retail industry, Hyundai is experiencing a decrease month by month in sales within India, and there is stiff rivalry between Hyundai, Tata Motors, and Mahindra to be placed in the number two spot in the list of the leading car manufacturers in India. The last decade has seen Hyundai rule this position, but with the increase in demand for home-produced passenger cars, both Mahindra and Tata experienced a significant boost in their sales.
The 35,443 units registered by the company reflect a remarkable change to its decade-long grip on the second position, following the market leader Maruti Suzuki. Even with very good sellers such as the Creta and Vena, Hyundai has not been able to survive the tide against other domestic organizations that are now very competitive in the sense that they have been able to respond better to changing consumer preferences in India.
The lead-up to the festive season challenges the competitiveness
As we enter the season of festivities, stakeholders in the industry are anticipating that the demand will pick up, but the magnitude of the upcoming recovery will be determined by consumer confidence as well as the lending market and rates, alongside how fast new models are brought to the market. Market repositioning in September is also indicative of the competitive environment in the Indian PV space, where the performance of Tata has spoiled the usual order of things.
The rise of Tata Motors as the second-largest car manufacturer in India is a critical point in the history of the automobile industry in India. The legacy of the company in integrating conventional ICE vehicles with the mobility lead in electric vehicles makes it strategically positioned towards future growth. The innovation and market sensitivity that Tata has so far sustained will determine whether it can hold on to this ranking as the festive season nears.