Finshots Daily How Mahindra became India’s 2nd biggest carmaker
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Sep 1, 2025 Discover the incredible journey of Mahindra as it transforms into India's second-largest carmaker and leads the SUV market. Explore the shifting tides of consumer preferences and how Mahindra adapted through innovative strategies and manufacturing techniques. Learn about the evolution of the automotive landscape and the key decisions that propelled Mahindra to the forefront of the industry, capturing the hearts of SUV enthusiasts. It's a compelling tale of resilience and ambition in a competitive market.
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SUV Shift Was A Market Turning Point
- India's car market shifted from hatchbacks to SUVs, creating an opening for SUV-first makers.
- Mahindra's SUV focus aligned with changing aspirations and regulatory tax advantages, boosting sales.
Compact SUVs Benefited From A Tax Sweet Spot
- Compact SUVs under 4 meters gained edge due to lower taxes and strong consumer demand.
- Mahindra's XUV3XO exploited this tax and size sweet spot to become a bestseller.
Regulation Favored Mahindra's Portfolio
- Tightened CAFE fuel-economy rules forced makers to balance heavy SUVs with efficient cars.
- Mahindra's SUV-heavy portfolio and EV push made it easier to meet these rules than rivals.