Auto Sales May 2025: SUV Demand Cushions Market Slowdown, Mahindra Retains No 2 Spot

Passenger Vehicle (PV) sales in India held steady in May, buoyed by strong demand for Sports Utility Vehicles (SUVs), even as overall consumer sentiment remained muted. As per industry trackers, around 352,000 units—including cars, sedans, and utility vehicles—were dispatched to dealerships last month, reflecting a marginal 0.1% increase over May 2024.
It's important to note that carmakers in India typically report wholesale dispatches rather than retail figures, which are actual purchases by end customers. According to industry insiders, retail sales during the month dipped by 0.8%.

Maruti Suzuki continues to lead

Maruti Suzuki India reported 3 percent year-on-year increase in total sales at 1,80,077 units in May. The country's largest carmaker sold a total of 1,74,551 units in May 2024.
Its total domestic passenger vehicle dispatches to dealers stood at 1,35,962 units last month as compared with 1,44,002 units in the year-ago period, a dip of 6 per cent.

Also Read: Maruti Suzuki to Tata Motors - Top 5 Car Makers With Highest Sales in May 2025 | Republic World

M&M retains second spot

Mahindra & Mahindra (M&M) has firmly held onto its position as India’s second-largest passenger vehicle manufacturer for May 2025, outpacing rivals Tata Motors and Hyundai Motor India. According to company data, Mahindra sold 52,431 passenger vehicles in May, registering a robust 21% year-on-year growth compared to 43,218 units sold in May 2024.

This growth, as industry analaysts reckon, is largely attributable to the company’s focus on its core strength—utility vehicles—with models like the XUV700, Scorpio-N, and the recently introduced electric offerings under the BE and XUV.e series gaining strong traction.

“We continue to see robust demand across our ICE and EV portfolios,” said Nalinikanth Gollagunta, CEO of the Automotive Division at M&M, adding, “This has enabled us to deliver industry-leading growth.”

Mahindra’s consistent performance has allowed it to maintain a comfortable lead over Tata Motors, which recorded 41,557 units in May, marking an 11% decline from the previous year. 

Hyundai, which briefly slipped behind Mahindra and Tata Motors in recent months, reclaimed the third spot with domestic sales of 43,861 units, but still trailed Mahindra by a significant margin.

Commenting on HMIL sales, Tarun Garg, Whole-time Director and Chief Operating Officer, HMIL said, “HMIL’s total sales volume for May 2025 stood at 58,701 units. May is a month of our routine week-long biannual maintenance shutdown at our Chennai manufacturing facility which affects availability of few critical models.” 

He went on to add, “ Going forward, we remain hopeful of a steady increase in demand for both domestic as well as international shipments with reduced uncertainty on the geo-political front and improved macro-economic situation.”

Toyota Kirloskar Motor (TKM) also posted strong performance with a 22% year-on-year growth, selling 29,280 units in May. 

Varinder Wadhwa, Vice President for Sales, Service, and Used Cars at TKM, attributed the momentum to the company’s strong MPV and SUV offerings. “There’s a clear customer shift towards vehicles that offer versatility and utility,” he noted. He also stated, “With forecasts pointing to a normal or above-normal monsoon, we anticipate improved sentiment—especially in rural and semi-urban regions. Combined with our diverse product lineup and strategic campaigns, we’re optimistic about sustaining this growth.”
Other automakers also registered growth. Kia India registered a 14% rise in sales to 22,315 units, while JSW MG Motor reported a 40% jump to 6,304 units.