Mahindra is emulating Maruti's approach, but with an emphasis on larger wheels and an electric focus.
In a significant shift in the Indian automotive industry, Mahindra & Mahindra (M&M) has been closing the gap with Maruti Suzuki in the utility vehicle (UV) market. The sales difference between the two companies, which was over 53,000 units in April-July 2024, has reduced to just 12,700 units in the same period of 2025.
Mahindra's diverse UV portfolio, which includes models like the Thar, Scorpio-N, Bolero, XUV700, and XUV 3XO, has formed a strong, consistent sales engine. The company reported a 20% year-on-year sales increase in July 2025, surpassing Hyundai to become India's second-largest carmaker.
A Broad and Modern UV Lineup
Rather than relying on a single runaway hit, Mahindra's multiple UV models cater to varied buyer segments. For instance, Scorpio volumes have quadrupled since FY22, and XUV 3XO appeals to younger, urban buyers.
Growth Rates and Market Position
In contrast, Maruti's UV sales fell about 6% year-on-year in April-July 2025 to approximately 214,641 units, while Mahindra’s UV sales increased 21.7% to around 201,938 units.
Mahindra's Electric Vehicle Ambitions
Mahindra plans to launch two new battery electric vehicles (BEVs) in early 2026 with a target of selling 48,000 BEVs in FY26, signaling a push to innovate within the UV segment.
Market Dynamics
Overall, the Indian passenger vehicle market showed muted growth. Maruti leads in volume mainly due to strong exports and hatchback sales, but consumer preference is clearly shifting toward SUVs and EVs, favoring Mahindra’s portfolio strategy.
Beyond Autos and Tractors
Mahindra's journey to the top isn't confined to the auto and tractor sectors. The company has a diversified business empire that includes financial services, hospitality, logistics, IT services, and renewables. Its listed investments in companies like Tech Mahindra, Mahindra Finance, and Mahindra Lifespaces provide both cash flows and optionality.
Financial Strength
Mahindra is sitting on rising free cash flows and increasing net cash. Its net profit expected growth in the coming years is expected to exceed that of Maruti's. The company's Q1FY26 operating numbers show a standalone auto EBIT margin, excluding EVs, of 10%, and for its farm segment, EBIT margin was 19.8%.
A Second Strong Engine
Mahindra's return on equity (ROE) is at 18%, while Maruti's is at 16%. The company's tractor sales, which serve as a second strong engine, also contribute to this financial strength. Q1FY26 tractor volumes were up 10.4% year-on-year, and EBIT margins for the farm segment were among the highest in India's auto sector at 19.8%.
Challenges Ahead
However, Mahindra's journey to the top isn't risk-free. Capacity constraints, execution risk in the EV roadmap, volatility in tractor margins, and high valuations pose potential challenges.
In conclusion, Mahindra & Mahindra is poised to reclaim its status as the leading utility vehicle maker in India, reflecting both a strategic product focus and improved market execution, while Maruti Suzuki faces challenges in growing its SUV share comparable to Mahindra’s dominant UV lineup.
- Mahindra's diverse portfolio, which includes utility vehicles like the Thar, Scorpio-N, Bolero, XUV700, and XUV 3XO, has formed a strong, consistent sales engine.
- Despite Maruti's strong exports and hatchback sales, consumer preference is shifting towards SUVs and EVs, favoring Mahindra’s portfolio strategy.
- Mahindra plans to launch two new battery electric vehicles (BEVs) in early 2026 with a target of selling 48,000 BEVs in FY26.
- In the financial landscape, Mahindra is sitting on rising free cash flows and increasing net cash, and its net profit expected growth in the coming years is expected to exceed that of Maruti's.
- Beyond the auto and tractor sectors, Mahindra has a diversified business empire that includes financial services, hospitality, logistics, IT services, and renewables.
- In the realm of finance, Mahindra's return on equity (ROE) is at 18%, while Maruti's is at 16%.
- The volatility in tractor margins and high valuations pose potential challenges for Mahindra's future in the market.
