Mahindra, Tata Motors push Hyundai out of top 3

NEW DELHI: Hyundai was pushed out of the top 3 in Indian car market in first month of the new financial year as homegrown Mahindra & Mahindra and Tata Motors surged past the Korean car major. Maruti Suzuki was on top of the list.

Mahindra emerged as the second-biggest in April, with wholesale dispatch of 52,330 units (28% growth). The company is driving strong with its set of SUVs, such as ScorpioN, Thar and XUV range, while also gaining some numbers with newly-launched electrics XEV9e and BE6. At 45,199 units, Tata Motors (down by 6%) was ranked third, a shade higher than Hyundai's 44,374 units (-12%).

This is not the first time that Mahindra overtook Hyundai. The Indian company, which posted a revival of sorts over the past few years, with new aggressively designed premium SUVs, was the second-biggest seller in Feb this year.

Both Hyundai and Tata Motors, which have a full line-up of cars (hatchbacks, sedans, and SUVs), are under pressure due to the general slowdown in the domestic car industry that is impacting compact cars. The sedan category has also been in decline over the past few years. With an SUV-only range, Mahindra is relatively safe as the off-roader category still continues to find buyers and grow.

Industry analysts say "reversals in rankings may continue to happen" over the next few quarters as Mahindra, Hyundai, and Tata will keep challenging each other. "The rankings may continue to shift among the three companies over the coming months," an analyst said.

An official with a car company said these are wholesale numbers and many companies are also trying to "right-size" their dealer inventories. "Otherwise, they will have to clear pending stocks with heavy discounts later, if the market continues to stay tough."

Rajesh Jejurikar, executive director & CEO of Mahindra's automotive and farm divisions, recently told TOI that the company has a clear focus on maintaining its volume and value leadership in SUVs, while driving in new "adventure-ready" off-roaders. "For us, revenue market share is a more critical metric, and so is having the top position in SUVs. And in this process, if we also become the No. 2 PV player during certain periods, that's clearly an added bonus for us."

The first month of the fiscal year also saw Toyota, Kia, Skoda, and JSW MG register growth. Car industry executives have forecast that the market may remain in a tough spot this year as uncertainty over US tariffs and tensions with Pakistan are making buyers nervous.

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