Mahindra closes in on Tata Motors as EV sales falter

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Subscribe to enjoy similar stories. Mahindra & Mahindra has surpassed Tata Motors as India’s third-largest carmaker thrice in the second half of 2024 on new launches at a time cooling electric vehicle sales and an ageing line-up have hurt the fortunes of the Tata Group company. In August, September, and November, Mahindra, the maker of Thar sport utility vehicle (SUV), cornered 12.64%, 12.64%, and 13.14% share of the nation’s passenger vehicle market, respectively, showed a Mint analysis of the government's vehicle registration data compiled by Fada Research.

That surpassed Tata’s 12.26%, 11.53%, and 13.10%, respectively, for those months. Tata Motors’ market share, driven by the Nexon EV, peaked at just over 14% in March but its performance has since deteriorated as India’s nascent electric vehicle market has been hit by a withdrawal or reduction in Central government subsidies. EVs account for just 2.5% of India’s annual passenger vehicle sales of about 4 million units.

A few carmakers’ troubles lie partly in its “over-reliance" on electric vehicles, which is still a nascent segment in India, Gaurav Vangaal, associate director at S&P Mobility, told Mint. The new EV lineup, once an advantage, is now facing setbacks with sales declining demand and increased competition, he said, adding that MG Motor India’s Windsor EV became the nation’s best-selling electric car soon after deliveries began in October, challenging the Tata’s early lead. Mahindra has gained with the success of mainstay SUVs like the Thar Roxx, which has garnered over 1.7 lakh bookings.

Attractive pricing of models like the XUV700 also helped it sustain volumes in its current line-up. For Tata, the refreshed Nexon has failed to deliver with sales. Moreover