According to data released by the Society of Indian Automobile Manufacturers (Siam) on Thursday, Tata Motors has successfully overtaken Mahindra & Mahindra to become India's second-largest passenger vehicle manufacturer by domestic dispatches in the first half of FY27. This shift represents a significant change in the competitive landscape of the automobile industry, driven by strong demand for SUVs and electric vehicles.
As reported by The Times of India, Tata's domestic passenger vehicle dispatches surged 43% to over 3.9 lakh units during April-September 2026, compared with Mahindra's just under 3.6 lakh units, which represented growth of around 20%. Maruti Suzuki retained its leadership position in the domestic market.
According to the Siam data, Mahindra witnessed strong demand for its electric SUVs, with combined dispatches of its BE and XEV models jumping 82% to 42,338 units during the six-month period. Their contribution to Mahindra's passenger vehicle volumes increased from 7.8% a year earlier to 11.8%, highlighting the growing importance of electric vehicles in its product portfolio.
As reported by The Times of India, Tata benefited from a 59% surge in utility vehicle dispatches, helping it regain ground against Mahindra. The Tata Nexon continues to maintain its position as a key contributor to this growth, having rebuilt Tata's reputation by becoming the first India-made car to score a 5-star Global NCAP rating in December 2018. The Nexon offers multiple engine options including petrol, diesel, and CNG variants, with the 1.2-litre turbo petrol serving as the volume engine across four gearbox choices.
The broader passenger vehicle industry also registered robust growth, with domestic dispatches increasing 28.3% to around 26.4 lakh units during April-September. This strong performance across the industry reflects the reshaping competitive landscape driven by SUV and electric vehicle demand.
