February 2025 witnessed mixed results for major automobile manufacturers Hyundai Motor India and Mahindra & Mahindra, with fluctuations in domestic sales contrasted by notable export performances.
Hyundai reported total sales of 58,727 units—this reflects a 2.93% decrease from the 60,501 units sold during the same month last year. Specifically, domestic sales declined by 4.93%, falling to 47,727 units compared to 50,201 units for February 2024. The company attributed the challenging figures to geopolitical tensions affecting market performance and speculated on the potential benefits tax reforms may bring to boost future sales.
Tarun Garg, the COO of Hyundai Motor India Limited, highlighted the optimism surrounding exports, as the company shipped out 11,000 units—an increase of 6.8% year-on-year from the 10,300 units exported during February 2024. “With a 6.8 per cent YoY growth in export sales in February 2025, we are witnessing increasing global demand for our made-in-India products, reflecting Hyundai’s strong acceptance worldwide,” he stated. Garg remained hopeful about the impact of new tax measures proposed within the Union Budget for 2025, which, he believes, might generate heightened market demand.
On the other hand, Mahindra & Mahindra experienced a 15% rise in total sales, achieving 83,702 units compared to 72,923 units sold during February 2024. The utility vehicle segment performed particularly well, with domestic sales rising by 19% to 50,420 units from 42,401 units the previous year. This surge can be attributed to Mahindra's successful SUV portfolio, as articulated by Veejay Nakra, President of the Automotive Division: “This strong performance is a result of a continued positive momentum for our SUV portfolio.”
Mahindra's success isn't limited to domestic markets; the company's SUV exports saw astonishing growth, climbing 99% to 3,061 units from just 1,539 units during February 2024. This remarkable performance reinforces Mahindra's capability to capture international markets effectively.
Regarding the agricultural machinery sector, Mahindra reported total tractor sales reaching 25,527 units, compared to 21,672 units sold during the same period last year, reflecting a growth of 17.7%. Hemant Sikka, the president of Mahindra’s Farm Equipment Sector, indicated positive agricultural conditions would likely sustain demand: “After a good Kharif crop, Rabi crop outlook is also looking positive due to favourable weather conditions.” He elaborated on how increased agricultural credit limits and government support aimed at boosting farmers' income would contribute to sustained tractor demand moving forward.
While February's sales present challenges for Hyundai, the company remains committed to recovery strategies, including the introduction of new and updated models to the market. On the other hand, Mahindra is poised to leverage its strong sales momentum and expand its market presence, particularly through its diverse offerings of SUVs and agricultural products.
Analysts remain cautiously optimistic about the Indian automotive sector as it navigates external pressures, including fluctuATING global conditions and competitive market dynamics. The developments over the past month show significant variations among manufacturers, highlighting individual company strategies and adaptability to changing circumstances.
For both Hyundai and Mahindra, the path forward will require attentiveness to market demands, competitive analysis, and fostering consumer relationships as they strategize their next moves.