Tata Motors reclaims 2nd spot in PV market in Q1 FY27 as SUV demand powers growth

Tata Motors has reclaimed the second position in the passenger vehicle (PV) market in the April-June quarter of FY27, overtaking Mahindra & Mahindra as sustained demand for utility vehicles (UVs) continued to reshape the competitive landscape.

According to data released by the Society of Indian Automobile Manufacturers (SIAM), Tata Motors dispatched 1,87,953 passenger vehicles during the quarter, ahead of Mahindra's 1,74,745 units. Maruti Suzuki retained its leadership position with 5,25,228 units, while Hyundai Motor India remained fourth with 1,39,374 units. The latest rankings mark a reversal from FY26, when Mahindra had overtaken Tata Motors to become the country's second-largest passenger vehicle maker.

The turnaround comes against the backdrop of a buoyant passenger vehicle market. Domestic PV wholesales surged 25.9% year-on-year to a record 12,73,811 units in the April-June quarter, extending the momentum after the industry closed FY26 with its highest-ever annual sales of 4.64 million units.

Utility vehicles continued to dominate the market, accounting for nearly 68% of total PV dispatches during the quarter, up from around 66% a year earlier, underscoring the sustained shift in consumer preference towards SUVs.

SUV portfolio drives Tata's resurgence

Commenting on the performance, Tata Motors Passenger Vehicles Managing Director & CEO Shailesh Chandra said the company's recent launches and robust customer demand underpinned the quarter's growth.

"The refreshed Tiago and Punch have received an encouraging response across powertrains, reaffirming Tata Motors' multi-powertrain strategy, while electric vehicle adoption continues to gather pace across segments, stated Chandra , who is also the president of auto industry body SIAM.

He went on to add, "Although supply constraints impacted Sierra volumes during the quarter, corrective measures are underway to augment production from key vendors and accelerate deliveries from the second quarter.

Tata's resurgence was led by its SUV portfolio, with the Punch emerging as its best-selling model at 60,321 units, followed by the Nexon with 55,561 units. Mahindra, meanwhile, continued to draw strength from the Scorpio, which remained its highest-selling model after recording domestic sales of 44,590 units during the quarter. Despite Tata reclaiming the No. 2 position, the gap between the two automakers stood at just over 13,200 units, indicating that the contest is likely to remain closely fought in the coming quarters.

The industry's SUV mix is also evolving. While compact SUVs continue to account for the largest share of utility vehicle sales, demand for midsize SUVs has strengthened steadily, prompting manufacturers to expand their product portfolios across multiple price points and powertrain options.

The momentum extended beyond passenger vehicles. Two-wheeler sales climbed 20.3% year-on-year to a record 56.29 lakh units during the April-June quarter, while commercial vehicle dispatches rose 18.3% to 2.65 lakh units. Three-wheeler sales surged 29.7% to an all-time high of 2.14 lakh units, reflecting broad-based growth across the automobile industry. Vehicle exports also registered healthy double-digit growth across major segments during the quarter.