Once overshadowed by their Korean counterparts, Indian carmakers Tata Motors and Mahindra & Mahindra have now decisively outpaced Hyundai and Kia in the domestic automobile market.
According to the latest data from the Society of Indian Automobile Manufacturers (Siam), in FY25, Tata Motors and M&M together sold 1.1 million passenger vehicles, nearly 25% more than the 853,873 units sold by Hyundai and Kia. This marks a major shift from FY20, when the Korean duo had a commanding lead, selling 54% more than their Indian counterparts (570,213 vs 325,180 units). In just five years, Hyundai and Kia have grown by 50%, while Tata Motors and M&M have clocked a whopping 240% growth.
Analysts attributed the turnaround to two key factors: the timing and the right models. “Over the past decade, Tata and M&M proved their mettle with high-quality vehicles like Nexon and XUV700. As they launched fresh models around the 2020s, buyers were more open to trying them. Hyundai and Kia, on the other hand, saw only moderate success with their newer offerings, except for consistent performers like Creta and Venue. Models such as the i20, new Verna, Tucson and Alcazar failed to excite the market, while Kia’s Seltos is now declining in sales,” an analyst said.
Gaurav Vangaal, associate director at S&P Global Mobility, said: “Tata positioned itself smartly using the government’s ‘vocal for local’ campaign and emphasised safety. Cars like the Punch and the Nexon scored 5-star safety rating from Global NCAP, giving buyers confidence. The branding, complete with ‘vocal for local’ stickers, struck a chord with the nationalist sentiment.”Handling supply chain disruptions, particularly the semiconductor shortage, also worked in favour of Indian brands. In 2022–23, when sub-4 metre SUVs faced long waiting periods of 6-8 months, Tata dealers managed to deliver the Nexon in less than three months, effectively drawing buyers away from competitors.
The model strategy played a pivotal role as well. M&M’s launch of the new Thar in October 2020, during the pandemic, was met with overwhelming demand, clocking over 9,000 bookings in just days. Tata’s Punch, introduced in October 2021, became the top-selling car by 2024.
The Korean brands aren’t backing down, though. Hyundai’s refreshed Creta led SUV sales in Q1 of 2025, and the company is preparing to launch the next-gen Venue later this year.
Kia, too, is gearing up for a strong comeback. Its new model, the Syros, has seen a successful launch with nearly 16,000 units sold since February. At a recent industry summit, Hardeep Singh Brar, senior V-P of sales & marketing at Kia India, hinted at major launches ahead, including two EVs, one in mid-2025 and another in early 2026.
