Tata Motors Extends Lead Over Mahindra and Hyundai in October Retail Sales, Rides Festive and GST Boost
Tata Motors continued its winning streak in the domestic passenger vehicle (PV) market, outshining Mahindra & Mahindra and Hyundai Motor India for the second consecutive month in October 2025. The homegrown automaker cemented its position as India’s second-largest car manufacturer after Maruti Suzuki, buoyed by robust festive demand and the recent Goods and Services Tax (GST) rate rationalisation.
According to data sourced from the Vahan portal, Tata Motors Passenger Vehicles recorded retail sales of 74,705 units, including electric vehicles (EVs), in October 2025. In comparison, Mahindra retailed 66,800 units, while Hyundai sold 65,045 units. Maruti Suzuki maintained its industry leadership with 2,38,534 units sold during the same period.
Festive Momentum Fuels Tata’s October Surge
Tata Motors’ strong performance was underpinned by exceptional festive sales spanning from Navaratri (September 22) to Diwali (October 21). During this 30-day period, the company delivered more than 1,00,000 vehicles, including 38,000 units of the Nexon and 32,000 units of the Punch, two of its most successful compact SUVs. The carmaker also crossed 25,000 deliveries during the Dhanteras–Diwali weekend alone.
Commenting on the festive season results, Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles, said,
“Our festive performance reflects the strength of our diversified portfolio across segments. The enthusiasm from customers, coupled with the benefits of GST rate rationalisation, has given a strong start to the second half of the fiscal. We are gearing up for exciting new launches, supported by continued demand momentum.”
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Month-on-Month Growth Highlights Industry Revival
October 2025 proved to be a significant rebound month for the PV sector.
On a month-on-month (MoM) basis, the industry saw sharp growth across key players:
| Company | October 2025 | September 2025 | Growth |
|---|---|---|---|
| Maruti Suzuki | 2,38,534 units | 1,23,242 units | 93.55% |
| Tata Motors | 74,705 units | 41,151 units | 81.54% |
| Mahindra | 66,800 units | 37,659 units | 77.38% |
| Hyundai | 65,045 units | 35,812 units | 81.63% |
The festive season coinciding with the GST 2.0 rollout played a pivotal role in reviving deferred demand. Analysts noted that consumers who postponed their purchases in September benefited from lower effective prices in October, lifting retail numbers across the board.
Supply Chain and Logistics: Industry Overcomes Challenges
Despite facing logistical hurdles—particularly a shortage of car carriers—automakers like Tata, Mahindra, and Hyundai managed to sustain their delivery momentum. Original equipment manufacturers (OEMs) leveraged rail freight and alternate distribution channels to mitigate bottlenecks.
An industry expert commented,
“The October rally was not just about festive enthusiasm—it was about smart supply chain management. OEMs maximized dispatches using rail routes and digital retail networks to reach customers efficiently. However, risks remain from ongoing global disruptions in electronic component supply.”
Tata’s Expanding Portfolio: ICE and EV Synergy
Tata Motors’ edge lies in its diverse and balanced portfolio spanning internal combustion engine (ICE) and electric vehicle (EV) segments.
Its ICE range includes Tiago, Tigor, Altroz, Punch, Nexon, Curvv, Harrier, and Safari, while its EV lineup features Tiago.ev, Tigor.ev, Punch.ev, Nexon.ev, Curvv.ev, and Harrier.ev.
Adding to its momentum, Tata will launch the all-new Sierra on November 25, aiming to reinforce its SUV leadership.
Vangaal, Senior Analyst at S&P Global Mobility, noted,
“Tata’s dominance in the sub-4-metre SUV space—led by Punch and Nexon—has solidified its urban appeal. With rising demand and the upcoming Sierra launch, the company is well-positioned to sustain growth through Q4 FY26.”
Rivals Keep Pace: Mahindra and Hyundai Stay Competitive
Mahindra & Mahindra continues to expand its SUV-focused portfolio, offering popular models such as Bolero, Bolero Neo, XUV 3XO, Thar, Scorpio-N, and XUV700, alongside EVs like the XUV400, BE 6, and XEV 9e. The brand’s strong rural footprint and adventure positioning remain key growth drivers.
Meanwhile, Hyundai Motor India is banking on new launches and premium upgrades to regain its lost ground. Its product mix includes Grand i10 Nios, i20, Aura, Verna, Exter, Venue, Creta, Alcazar, and Tucson, with Creta Electric and Ioniq 5 strengthening its EV play. The automaker is gearing up to launch the second-generation Venue on November 4, expected to boost its compact SUV sales.
Industry Outlook: Sustained Growth Ahead
Industry analysts expect retail momentum to continue through the remainder of FY26, supported by GST reforms, lower interest rates, and new product launches across OEMs. However, challenges related to component availability and cost inflation may weigh on margins in the short term.
“The Indian PV market has entered a new growth phase,” said Vangaal. “With demand shifting toward feature-rich SUVs and affordable EVs, automakers that can balance innovation, scale, and cost efficiency will lead the next wave of growth.”
Conclusion
With two consecutive months of outperforming Mahindra and Hyundai, Tata Motors has reaffirmed its position as India’s strongest challenger to Maruti Suzuki’s dominance. Backed by its dynamic product strategy, robust EV lineup, and festive-season momentum, the automaker appears well-poised to maintain its lead in the coming quarters.
