New Delhi: The landscape of India's passenger vehicle (PV) market is undergoing a notable transformation as the dominance of long-standing players declines while new entrants gain ground.

According to a research report by Jefferies, the combined market share of the two top automobile manufacturers--Maruti Suzuki and Hyundai--has slipped to a 12-year low in the first half of fiscal year 2025 (1HFY25).

This shift highlights a dynamic change in consumer preferences and competitive positioning within the PV sector.

The report said, "Market shares of the top 2 OEMs (Maruti and Hyundai) slipping to 12-year lows in 1HFY25 and Mahindra and Toyota climbing to all-time highs".

While Maruti Suzuki and Hyundai have traditionally led the PV market in the country, other players, particularly Mahindra & Mahindra (M&M) and Toyota, are making significant inroads.

Similarly, Tata Motors' market share peaked at an 11-year high of 14 per cent in FY23, though it has slightly decreased to 13.3 per cent in the first half of FY25.

The report also mentioned that the second quarter was a challenging period for the country's PV industry, with overall wholesale volumes--including exports--registering a 1 per cent year-on-year decline.

This trend indicates that the sector is facing some headwinds even as consumer preferences shift towards newer, feature-rich, and more versatile vehicles like SUVs, an area where Mahindra and Tata Motors have found success.

It said, "2Q was a weak quarter for India's PV industry, with wholesale (including exports) falling 1 per cent YoY."

As per the recent sales data from the Society of Indian Automobile Manufacturers (SIAM), the passenger car sales in October has registered a de-growth of 17 per cent.

However, the passenger vehicles (PVs) sales which include all passenger vehicles like Bus, Auto, Car saw their highest-ever sales for October with 3,93,238 units sold--a 0.9 per cent increase compared to October 2023.