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In a significant shift in the Indian automotive landscape, Mahindra & Mahindra Ltd (M&M) has successfully surpassed Tata Motors to claim the position of India's third-largest carmaker by volume. This achievement is attributed to the robust performance of M&M's sport-utility vehicles (SUVs), which witnessed a remarkable 24% year-on-year growth in sales, reaching 51,062 units in September. Conversely, Tata Motors experienced an 8% year-on-year decline in its domestic passenger vehicle wholesales, registering 41,063 units last month.
This marks a historic moment for Mahindra, as their monthly wholesales – representing dispatches from the factory to dealerships – crossed the 50,000 mark for the first time. Notably, M&M's September sales trailed behind Hyundai Motor India, the country's second-largest carmaker, by a mere 39 units.
Mahindra's success stands in stark contrast to the overall trend of sluggish car sales in the second quarter, which was primarily attributed to weak consumer demand and seasonal factors. M&M, however, bucked this trend, partly propelled by the launch of its compact SUV XUV 3XO earlier this year. The company's passenger vehicle wholesales surged by 21% year-on-year to 2,60,210 units during the first half of 2024-25, and they are aiming for a mid-to-high-teens growth this fiscal.
On the other hand, Tata Motors faced a more challenging period. Their domestic car wholesales dropped by 3.6% to 268,034 units in the first half of the current fiscal, compared to 278,070 units in the corresponding period of the previous fiscal year. This downturn was primarily attributed to sluggish demand for electric vehicles (EVs) due to the discontinuation of registration and road tax waivers in several key states and the phasing out of subsidies for fleet operators.
Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, attributed the slump in fleet EV sales to the lapse of the FAME II scheme and the exclusion of the fleet segment from the PM-eDRIVE scheme. He highlighted the impact of these changes on fleet operators, which significantly affected EV sales.
Tata Motors' wholesales in the second quarter of FY25 were also affected by the need to adjust their wholesales to align with lower-than-expected retail figures, aimed at maintaining control over channel inventory. The company experienced a 6% decline in wholesales compared to the same period in the previous fiscal year, reaching 130,753 units. However, Chandra expressed optimism about the upcoming festive season, citing a noticeable increase in registrations towards the end of September.
Source: Mahindra surpasses Tata to become India’s 3rd biggest carmaker