Mahajan, who was admitted to the intensive care unit of the Sher-i-Kashmir Institute of Medical Sciences Hospital following the crash on Sunday, died this morning, an official of the disaster management cell said.
Mahajan had suffered grievous internal injuries in the crash at Simthan in Anantnag district and was on life support system at the hospital.
Jitender Shukla, the driver of the vehicle, was killed on the spot on the last leg of the Mughal Road rally when their vehicle rolled into a deep gorge at Simthan.
The rally ended here yesterday. 93 teams, including Kashmir's first motorsport team, Baba Reshi Lions, participated.
Amit Rajit Ghosh and Mohit Verma won the third edition of Mughal Road rally in 4x4 Xtreme four-wheelers and Xtreme bikers categories, respectively.
As a mark of respect to Shukla, the prize distribution ceremony of the rally was called off yesterday.
The 600-kilometre long rally passes through the historic Mughal road that was once traversed by the caravans of Mughal emperors to reach Kashmir.