September 2025 E4W Sales Shocker: Tata's Grip Weakens, BYD & Kia Climb Up, Hyundai Collapses to #6!

Note : The following sales data reflects VAHAN registrations for September 2025 across all states and Union Territories, excluding Telangana state.

India’s Electric 4 Wheeler market witnessed a period of challenging stagnation at the top in September 2025, even as global and domestic competition intensified below the leader. While Tata Motors maintained its volume dominance, all three major domestic players reported a sequential sales decline, signaling that their established EV market share is facing serious pressure. The month’s biggest story, however, was the dramatic collapse of Hyundai and the quiet, strategic ascent of challenger brands BYD and Kia.

September 2025 E 4W Sales Leaderboard

The rankings saw notable volatility, particularly in the middle and lower tiers:

Tier 1 Analysis: Stagnation at the Summit

The top three Indian manufacturers—Tata, MG, and Mahindra—all struggled to maintain sales momentum in September:

Tata’s Grip Under Challenge (#1 : 6,095 units)

• Tata Motors, the undisputed E 4W market leader, posted a slight decrease in its Tata EV Sales compared to the previous month. The dip, despite its leadership, is attributed to rising competitive density. The continuous entry of new models, rapid feature updates, and technological advancements from rival OEM's are forcing Tata to fight harder to retain its over 50% market share. The days of uncontested dominance appear to be ending, compelling Tata to accelerate the refresh cycle for its popular models like the Nexon EV and Tiago EV.

MG and Mahindra Face Headwinds (#2 & #3)

• MG Motor secured the second spot with 3,845 units (#2), but its sales volume declined MoM. The company felt the heat from competitors while also potentially facing broader market pressures and financial fluctuations often associated with the highly competitive, capital-intensive EV segment. Maintaining the sales pace of models like the MG ZS EV requires continuous marketing and infrastructure investment, which is proving challenging amidst tightening market conditions.

• Mahindra followed closely with 3,187 units (#3), also registering a sales decrease. This dip suggests the initial traction of the Mahindra XUV400 EV is leveling off. Industry analysts hope Mahindra is using this period to strategize new market approaches, potentially focusing on improved distribution, aggressive pricing, or product portfolio expansion to regain momentum in the crucial festive quarter.

Tier 2 Analysis: The Competitive Shock

The lower end of the top six saw massive swings, redefining the market hierarchy and revealing which players are most vulnerable to disruption.

Global Challengers Ascend: BYD and Kia

Both global players demonstrated positive momentum:

• BYD climbed to #4 with 541 units, up from #5 last month. This consistent growth in the premium segment (BYD Atto 3, E6) signals that the Chinese giant is slowly but surely cementing a strong position in the Indian market, particularly among buyers looking for a premium, dedicated electric vehicle platform.

• Kia also registered growth, moving up to #5 with 499 units. Though the volume is low, the steady month-on-month improvement indicates that Kia’s premium offerings are finding a niche and that the brand’s long-term EV sales growth strategy is working.

Hyundai’s Dramatic Downturn (#6: 345 units)

• Hyundai experienced the most significant shockwave of the month, falling sharply from the #4 spot in August to #6 in September with just 345 units. This dramatic sales decline is a clear indication that new features, cutting-edge technology, and the aggressive positioning of competitors have severely impacted Hyundai’s market relevance. The loss of position signals that its current EV portfolio is struggling to keep pace with the rapidly evolving technology and competitive pricing in India’s EV segment disruption.

Conclusion: Diwali Anticipation to Boost October E 4W Sales

September 2025 demonstrated that the Indian EV 4W market is quickly maturing, where even the market leader is vulnerable to aggressive feature parity and new entrants. The market dynamics show that volume leaders must now prioritize innovation and sustained value proposition to fend off aspirational competitors.

The outlook for October is highly optimistic due to the anticipation of the Diwali festive season, which falls within the month. Historically, this is the peak period for high-value purchases, and the combined effect of pent-up demand and aggressive Diwali offers from every major OEM is expected to translate into a significant surge in electric car sales. This festive boost will be critical for brands like Mahindra to regain momentum, and for Tata to reinforce its leadership against the ascending global challengers. The battle for the top spot will be defined not just by innovation, but by who can successfully convert festive excitement into customer purchases.