New Delhi, April 2 -- Mahindra & Mahindra's (M&M) position as India's second-largest carmaker, wrested from Hyundai Motor India just a year ago, is facing a strong challenge from cross-town rival Tata Motors Passenger Vehicles.

Mumbai-based Mahindra marked a key milestone as it ended financial year 2026 (FY26) as India's number two carmaker, selling more than 623,000 cars, an increase of about 22% over FY25. Tata Motors sold 601,000 units, registering a growth of about 15%.

But a closer look at data shows that Mahindra's grip on the number two spot has come under strain, as Tata Motors PV appears to have gained the most momentum since September when the government announced cuts to goods and services tax (GST) on a wide range of product...