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Is Maruti's reign over the SUV market being challenged by Mahindra's aggressive move to snatch the top spot?

Utility vehicle market competition tightens between Mahindra & Mahindra and Maruti, fueled by a robust SUV lineup, increased rural demand, and electric vehicle strategies. Strengthened by healthy profit margins and extensive business diversity, M&M is strategically placed to spearhead India's...

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Is Maruti's dominance under threat? A look at Mahindra's rise as a potential SUV leader.
Is Maruti's dominance under threat? A look at Mahindra's rise as a potential SUV leader.

Is Maruti's reign over the SUV market being challenged by Mahindra's aggressive move to snatch the top spot?

In the competitive Indian automotive market, Mahindra & Mahindra (M&M) has been making significant strides in the utility vehicle (UV) segment, narrowing the gap with market leader Maruti Suzuki.

Over the past year, M&M's UV sales have increased by about 21.7% year-on-year between April and July 2025, reaching roughly 201,938 units. In contrast, Maruti Suzuki's UV sales declined by 6% in the same period, amounting to approximately 214,641 units. By July 2025, the difference between the two dropped to just 2,900 units, Mahindra's closest position to Maruti's in nearly a decade.

M&M's growth in this segment can be attributed to several key factors:

  1. Broad and diversified product portfolio: M&M's UV sales strength comes from a range of models including the Thar, Scorpio-N, Bolero, XUV700, and XUV 3XO. This strategy targets multiple consumer segments without relying on a single hit model, creating a steady sales base.
  2. Strategic new launches and variant updates: Timely introductions like the XUV 3XO and upcoming new platforms (including electric versions of Thar and Bolero) maintain customer interest and drive showroom footfall.
  3. Electric vehicle (EV) push: M&M is aggressively expanding its electric mobility offerings with plans for multiple BEV launches in early 2026 and a target of 48,000 EV sales in FY26, leveraging government incentives and rising EV demand.
  4. Synergies from a strong tractor and commercial vehicle business: Growth in M&M's tractor volumes (up 10.4% in Q1 FY26) cushions it from passenger vehicle market fluctuations.
  5. Growing rural and urban demand for SUVs: M&M benefits from sustained SUV demand across markets, both urban and rural, supported by demographic shifts and rising incomes.

While Maruti Suzuki still holds the lead in UV sales, its decline in this segment has contributed to M&M closing the gap. M&M's focus on electrification, leveraging its rural and commercial vehicle presence, and capitalizing on strong consumer demand trends favoring SUVs and electric mobility in India have been instrumental in its growth.

M&M's financial services arm also contributes to its consolidated earnings, and the company plans to launch two new battery electric vehicles in early 2026. With rising free cash flows and increasing net cash, M&M seems poised to continue its upward trajectory in the UV segment.

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