MUMBAI, June 2nd 2025 – For the second consecutive month, Mahindra has surpassed Tata Motors to take the second position in terms of overall passenger car sales for May 2025, despite the company reporting a slight 2% year-over-year increase in EV wholesale volumes in May 2025.
Tata Motors shipped 5,685 electric vehicles (EVs) to dealerships, up from 5,558 units in May 2024. EV sales increased 6.9% month-over-month from 5,318 units in April.
The modest EV growth comes as Tata prepares to launch its Harrier EV, a new entry in the premium electric SUV segment, on May 3. Although the company’s overall performance was hindered by a wider decline in internal combustion engine (ICE) models, it is still India’s leading EV carmaker by volume.
Tata Motors’ EV strategy continues to hinge on volume models like the Tiago EV, Tigor EV, and Nexon EV, which have helped it build early scale. However, the segment’s economics are starting to change due to pressure on prices, rising input costs, and the termination of some subsidy programs.
Despite its long-standing dominance in the EV market, Tata’s share is being tested by rivals moving aggressively into the electric space. MG Motor sold 3,732 EVs in May—a 147% year-on-year jump—driven by the compact Comet EV and its refreshed ZS EV. MG’s market share rose to 30.6%, narrowing the gap with Tata’s leadership.
Meanwhile, Mahindra & Mahindra Ltd. posted its strongest EV performance yet, clocking 2,604 units in May 2025, up from just 594 units in the same month last year. This represents a 338% YoY increase, lifting its EV market share to 21.3%, according to data from the government’s Vahan portal.
It is expected that Mahindra’s late but focused EV strategy has already accelerated, with products created on its in-house INGLO platform.
With the BE.06 & XEV 9 E earlier launches, which are paying handsome dividends, the company is also fast-tracking its entry into the EV market.
In the upcoming months, it intends to introduce more models, including the XUV 3XO EV and XEV 7e. Even though Mahindra’s EV sales are still modest when compared to Tata’s, the company’s aggressive roadmap suggests that competition will grow in a market that Tata has so far dominated.
As automakers diversify their EV portfolios and compete on both price and technology, market observers expect rankings to become more volatile.
Tata sold 41,557 PV wholesale units in May, an 11% year-over-year decrease from 47,075 units in the same month the previous year and 46,697 units in April 2025. For the second consecutive month, the company has lost its No. 2 position in the Indian passenger vehicle market to Mahindra & Mahindra Ltd. (M&M).
Looking at M&M’s overall performance, the company reported 52,431 domestic PV sales in May, a number supported by the ongoing demand for its main SUV lineup, which includes the XUV700, Thar, and Scorpio-N. With exports included, monthly auto sales totalled 84,110, a 17% increase from the previous year.
The numbers coincide with a more general cooling of the Indian PV market. Compared to 47,075 units in May of last year, industry-wide wholesales, including those for electric vehicles, dropped 11% to 42,040 units. The decline is a continuation of the uneven retail traction and poor consumer sentiment that persisted for the majority of 2025.
An industry executive familiar with wholesale trends stated that “as the market matures and more players enter, Tata’s EV numbers are still growing, but the pace is slowing.”
“The competition is getting more intense, especially in the premium EV and small SUV markets, as evidenced by Mahindra’s electric vehicle initiative and Hyundai and MG’s performance.” he added
Hyundai and Kia’s EV lineup, which includes the Creta EV, Ioniq 5, and the recently updated Kia EV6, is still a competitor in the mid-segment to premium market, despite pressure from growing local alternatives.
The next stage of the Indian EV market is expected to rely on aggressive pricing strategies, consistent product innovation, and quicker development of nationwide charging infrastructure, as the country’s overall PV demand appears to be slowing down.
Tata continues to lead the EV market for the time being, but a leading auto management consultant warned that its dominance may soon be put to the test like never before as MG and Mahindra close in. We now need to see how the market behaves post the Harrier EV launch
