Mahindra Seals #2 Spot in Indian Auto Market, Eyes Aggressive Growth in 2026

Mahindra & Mahindra (M&M) is entering 2026 with historic momentum, having officially displaced Hyundai and Tata Motors to become India’s second-largest passenger vehicle manufacturer by annual sales.

Leveraging a strategic pivot to an "SUV-only" portfolio and the implementation of significant tax reforms, the Mumbai-based automaker is now focused on defending its new ranking through a series of "tech-disruptor" launches, led by the newly premiered XUV 7XO.

The 2025 Market Shift: A New Hierarchy

Calendar Year 2025 marked a competitive reorganization of the Indian auto sector. According to finalized registration data, Mahindra’s registrations reached approximately 5.81 lakh units (up from 4.90 lakh in 2024), while total retail sales hit 5,92,771 units.

This 20% growth allowed Mahindra to leapfrog from 4th place in 2024 to 2nd place in 2025, trailing only Maruti Suzuki. The surge was primarily driven by the "Thar family"—comprising the 3-door Thar and the new Thar Roxx—which together crossed the 1-lakh sales milestone in a single year.

Product Strategy: Launch of the XUV 7XO

On January 5, 2026, Mahindra officially launched the XUV 7XO, the highly anticipated successor to the XUV 700. Positioned as a "tech disruptor," the 7XO introduces five segment-first features, including a 540-degree camera (offering a view beneath the car) and a triple-screen dashboard featuring a dedicated 12.3-inch co-driver entertainment system.

• Pricing: Starts at ₹13.66 lakh for the AX variant, going up to ₹24.92 lakh for the top-end AX7L Diesel AWD (ex-showroom).
• Timeline: Bookings open on January 14, 2026. Deliveries for the premium AX7 series will begin the same day, while lower variants (AX, AX3, AX5) are scheduled for April 2026.

The "Electric Origin" Push

Mahindra's electric vehicle (EV) division also hit its stride in 2025, contributing 7% of total volumes. The XEV 9e (recently awarded "Green Car of the Year 2026") and the BE 6 have bolstered the brand's premium image.

Speaking to the press, Rajesh Jejurikar, Executive Director and CEO (Auto & Farm Sectors), confirmed plans to increase EV production capacity at the Chakan plant to 8,000 units per month by March 2026 to meet the growing order bank.

Policy Tailwinds: GST 2.0

The industry-wide growth of 2025 (totaling a record 45.5 lakh units) was significantly aided by the September 2025 GST Reforms. Under "GST 2.0," the tax structure for SUVs was simplified to a flat 40% slab, removing previous cess layers that often pushed taxes toward 50%. This reform, combined with four RBI rate cuts in 2025, has notably revived demand in rural and semi-urban markets, which grew at 12% compared to 8% in urban centers.

Summary

Mahindra & Mahindra (M&M) enters 2026 as India’s second-largest passenger vehicle manufacturer, having officially displaced Hyundai and Tata Motors in the 2025 annual rankings. The company’s growth strategy for the new year centers on a "Technology First" approach, led by the newly launched XUV 7XO and the XEV 9e "Born Electric" SUV. With a record-breaking 2025 retail performance of 5.92 lakh units, Mahindra is leveraging recent GST 2.0 tax reforms to expand its dominance in the premium SUV segment while scaling its EV production capacity at Chakan to 8,000 units per month by March 2026.

Frequently Asked Questions (FAQs)

Q1: When can I book the XUV 7XO? 

Official bookings open on January 14, 2026, but test drives begin January 8.

Q2: How did GST 2.0 lower prices? 

For large SUVs, moving to a flat 40% rate (from a previous effective 48–50%) has reduced on-road prices significantly.

Q3: What is the XEV 9s? 

It is the 7-seater electric alternative to the XEV 9e, starting at ₹19.95 lakh.