The competition for the runner-up spot in India’s passenger vehicle (PV) market is heating up between Tata Motors and Mahindra & Mahindra (M&M), as electric vehicles (EVs) become a key differentiator and both auto manufacturers increase production to satisfy demand.

Tata has remained ahead of Mahindra for the majority of 2026-27 (FY27), but the difference between them has changed significantly. In September, Mahindra temporarily surpassed Tata by a mere 89 vehicles, but Tata reclaimed second place in October with a margin of 8,467 units, as per data from the Federation of Automobile Dealers Associations (Fada).

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From April to October, Tata recorded 417,559 PVs, while Mahindra achieved 389,435 units, resulting in a total advantage of 28,124 vehicles. Maruti Suzuki India maintains its lead in the market, whereas Hyundai Motor India, which previously held second place, has fallen behind both Tata and Mahindra lately.

Fada data indicate that Maruti Suzuki topped PV retail registrations from April to October, trailed by Tata, Mahindra, Hyundai, and Toyota. Hyundai maintained fourth place during the entire period, while Toyota stayed in fifth until September, when Kia surpassed it in October.

The rivalry between Tata and Mahindra has stayed tight over the financial year. In April, Tata was ahead of Mahindra by 2,452 registrations, the difference increased to 4,233 units in May, then decreased to 2,910 in June and 2,555 in July. In August, the gap increased to 7,596 units, but Mahindra gained the lead by 89 vehicles in September.

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In October, Tata reestablished a significant advantage. Its PV registrations increased by 28.3 percent sequentially to 73,449 units, whereas Mahindra’s grew by 13.3 percent to 64,982 units. In October, Tata's market share was 14.47 percent, while Mahindra had 12.8 percent. Hyundai registered 58,099 vehicles, capturing an 11.44 percent market share.

Between April and October, Tata recorded 88,125 electric PVs (ePVs), whereas Mahindra logged 50,322, resulting in a lead of 37,803 units in the sector. Without counting EVs, Mahindra recorded 339,113 PVs over the seven months, surpassing Tata’s 329,434 units. This suggests that Tata's robust EV sector has played a crucial role in preserving its overall advantage over Mahindra. During April–October, EVs represented approximately 21.1 percent of Tata's passenger vehicle registrations, in contrast to Mahindra's 12.9 percent.

The firm reported that it had sold over 130,000 electric vehicles in the last year and maintained its position as the leader in the ePV sector with a market share of over 40 percent. The CNG volumes have surpassed 200,000 units, capturing a 21 percent share in the personal segment.

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Mahindra, on the other hand, has been making progress in electric vehicles. EV registrations rose to 8,538 units in October, up from 7,780 in September, whereas Tata’s saw a slight decrease to 14,669 units from 14,791.

The difference in EV registrations between the two companies decreased to 6,131 units in October, down from 7,011 in September. The October rankings occurred amidst a 14.23 percent year-on-year drop in total PV retail registrations to 507,768 units. Fada attributed the decrease to the strong base of October 2025, as both Navratri and Diwali occurred in that month, unlike this year when Diwali is in November.

As Tata and Mahindra broaden their SUV and EV offerings, and with Mahindra set to significantly increase production capacity, the rivalry for the second spot is expected to stay fierce in the upcoming months.