Archive · 1 Oct 2026
India Car Sales Surge 21% as Festive Demand Strengthens
Car companies in India sold many more vehicles to dealers in September than they did last year.
Industry dispatches reached about 4.60 lakh cars, up 21%.
Companies built more cars because many customers are expected to buy vehicles during the festival season.
This season includes Navratri, Dussehra and Diwali.
Cheaper taxes and lower borrowing costs also helped people consider buying cars.
Maruti Suzuki sold 1.82 lakh vehicles, which was much higher than last year.
Kia India had its best-ever monthly sales.
Industry executives expect strong festive demand, but one executive warned that growth may be slower than last year.
Estimated industry car dispatches rose 21% year over year to 4.60 lakh units in September.
Manufacturers increased production ahead of Navratri, Dussehra and Diwali amid strong customer sentiment.
Lower GST rates, reduced repo rates and income-tax changes supported demand and financing conditions.
Maruti Suzuki reported 1.82 lakh units sold, up 36.5% from September last year.
Kia India recorded its highest-ever monthly sales, while other major automakers also reported year-on-year growth.
- Who
- Indian passenger-vehicle manufacturers, including Maruti Suzuki, Tata Motors Passenger Vehicles, Mahindra & Mahindra, Hyundai Motor India, Kia India and JSW MG Motor India.
- What
- Estimated monthly car dispatches rose 21% year over year to 4.60 lakh units in September.
- When
- September, ahead of the festive period beginning with Navratri in October and continuing through Diwali in November.
- Where
- India.
- Why
- Manufacturers increased production to meet strong festive demand, supported by lower GST rates, reduced borrowing costs and income-tax changes.
Optimistic Demand Outlook
Cautious Growth Outlook
Festive-season sales
Optimistic Demand Outlook
Automakers and industry executives expect customer demand to remain strong during Navratri, Dussehra and Diwali.
Cautious Growth Outlook
Maruti Suzuki cautioned that growth could be lower than during last year’s festive period, when pent-up demand followed new GST rates.
Market momentum
Optimistic Demand Outlook
September sales growth across major manufacturers and Kia India’s record monthly sales indicate sustained momentum.
Cautious Growth Outlook
The industry could face a seasonally softer second quarter, according to Tata Motors Passenger Vehicles, even though demand has remained supported.
- September industry dispatches
- Approximately 4.60 lakh units
- Year-on-year growth
- Around 21%, compared with 3.78 lakh units in September last year
- Maruti Suzuki sales
- 1.82 lakh units, up 36.5% year over year
- Tata Motors Passenger Vehicles sales
- 70,210 units, up 15% year over year
- Mahindra & Mahindra sales
- 64,092 units, up 14% year over year
- Hyundai Motor India sales
- 57,166 units, up 10.9% year over year
- Kia India sales
- 32,017 units, up 41% year over year and its highest-ever monthly total
- Maruti Suzuki pending orders
- Approximately 2 lakh units, with network stock of about 17 days