The Indian passenger vehicle market in May 2025 showed a marginal year-on-year (YoY) growth of 0.2%, with total sales reaching 3,49,713 units, compared to 3,49,057 units in May 2024. However, sales dipped by 1.1% month-on-month (MoM) from 3,53,449 units in April 2025. Factors such as geopolitical tensions and pre-monsoon rains impacted consumer sentiment, leading to mixed performances across major automakers. Below is a detailed analysis of key brands, focusing on Maruti Suzuki and Honda, alongside other notable players like Mahindra, Hyundai, and Tata Motors, based on the latest available data.
Maruti Suzuki: Market Leader with a Dip
Maruti Suzuki retained its top position in the Indian car market but faced challenges in May 2025. The company sold 1,80,077 units overall, a 3.2% YoY increase from 1,74,551 units in May 2024, largely driven by an 80% surge in exports (31,219 units). However, domestic sales fell by 5.5% to 1,38,690 units, with passenger car sales specifically dropping 13% YoY. The Maruti Dzire emerged as the best-selling car, overtaking the Hyundai Creta, while models like Ertiga, Brezza, and Grand Vitara continued to perform strongly, particularly in CNG and hybrid variants. Maruti’s market share slipped from 41.3% in May 2024 to 38.9% in May 2025, reflecting increased competition.
Honda: Conservative Approach Amid Subdued Demand
Honda Cars India reported total sales of 5,985 units in May 2025, comprising 3,950 domestic units and 2,035 export units. The company adopted a cautious strategy, moderating dispatches to maintain lean inventory levels due to subdued consumer sentiment. Honda’s portfolio, heavily reliant on sedans like the City and Amaze, and the compact SUV Elevate, struggled to keep pace with SUV-dominated competitors. Domestic sales were slightly up from 4,822 units in May 2024, but exports dropped sharply from 6,521 units, reflecting a mixed performance. Honda’s focus on inventory management and optimism for better monsoon-driven retail performance were highlighted by Kunal Behl, Vice President, Marketing & Sales.
Other Key Players
• Mahindra & Mahindra: Secured the second spot with 52,431 units sold, a 21% YoY growth from 43,218 units in May 2024. SUVs like the Scorpio and XUV700 drove this growth, with Mahindra’s market share rising to 15% from 12.4%.
• Hyundai Motor India: Slipped to third place with 43,861 units, down 10.8% YoY from May 2024, partly due to a week-long maintenance shutdown at its Chennai facility. The Creta remained a strong performer, though it was surpassed by the Maruti Dzire as the top-selling car.
• Tata Motors: Ranked fourth with 41,557 units, an 11% YoY decline from 46,697 units in May 2024. The recent launch of the Altroz facelift and Harrier EV is expected to boost future sales.
Market Trends and Insights
• SUV Dominance: SUVs continued to drive growth for brands like Mahindra, Kia, and MG Motor, with models like the Scorpio, Seltos, and Windsor EV gaining traction. Maruti’s Brezza and Grand Vitara also capitalized on this trend, supported by CNG and hybrid options.
• Decline in Entry-Level Cars: Maruti’s entry-level models like Alto, Wagon R, and Celerio faced reduced demand, contributing to its domestic sales dip. Rising competition and higher price points (crossing the ₹3.5 lakh barrier) have eroded their affordability advantage.
• Export Growth: Maruti’s 80% export surge highlights a growing international demand, compensating for domestic challenges. Honda, however, saw a sharp export decline, impacting its overall performance.
• External Factors: Geopolitical tensions, referred to as ‘Operation Sindoor,’ and pre-monsoon rains in northern India negatively affected sales, particularly for Maruti and Hyundai.
Conclusion
May 2025 painted a mixed picture for the Indian car market. Maruti Suzuki maintained its dominance but faced domestic challenges, while Honda adopted a conservative approach amid weak demand. Mahindra’s SUV-led growth outshone Hyundai and Tata, which struggled with declines. The market’s marginal growth underscores the resilience of SUV demand and export momentum, but external factors and shifting consumer preferences continue to shape the competitive landscape.