Indian auto's real test lies ahead after firecracker start to festive season
Benchmarks Nifty23,665.35224.55FEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return17.99 % Invest NowFEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return9.04 % Invest NowEnter search…
India’s passenger vehicle dispatches crossed the 5-lakh mark for the first time in October, with wholesales estimated to grow 13-15% year-on-year to 5.25-5.3 lakh units. Maruti Suzuki and Hyundai reported record monthly sales, while commercial vehicle makers also posted strong growth.
India’s carmakers had a bumper festive month, shifting into top gear in October as passenger vehicle dispatches crossed 5 lakh units for the first time, with Maruti Suzuki, Mahindra and Hyundai posting record monthly sales.Domestic passenger vehicle wholesales are estimated at 5.25-5.3 lakh units in October, compared with 4.6 lakh units in the year-ago month. This would mark growth of around 13-15% despite a high base.
ALSO READ | Maruti Suzuki records highest-ever monthly sales at 2.76 lakh units in October, up 25% YoY
Maruti Suzuki reported record monthly sales of 2,76,120 vehicles, up 25% year-on-year. Hyundai Motor India’s domestic wholesales rose 16.7% to 62,799 units. Mahindra & Mahindra also reported strong demand as the company's total vehicle sales grew 9% year-on-year to a record 13,1109 units.
"My take is, the industry should be between 5.25-5.3 lakh units," said Partho Banerjee, senior executive officer at Maruti Suzuki.
Live Events
ALSO READ | Tata Motors PV sales rise 23% to 75,426 units; CV sales grow 27% in October
In the commercial vehicle segment, Tata Motors reported a 27% rise in sales, while Ashok Leyland recorded 23% growth. Tractors, however, remained a weak spot, with Mahindra & Mahindra reporting a 12% decline in total sales. The company attributed the fall primarily to a shift in festive dates.
Festive demand supports dispatches
October’s growth comes against a high base. Last year, vehicle sales were subdued from mid-August to mid-September as buyers delayed purchases ahead of the GST rate cut. After the lower rates took effect in the last week of September 2025, demand rebounded, supporting sales through the festive season and into October.
This year, with Dhanteras and Diwali falling in the first half of November, October wholesales largely reflect automakers stocking up dealerships ahead of peak festive deliveries.
The shift in festive dates is also expected to affect retail registrations. October registrations are likely to decline against last year's high base, as a significant share of festive deliveries moves to November, said Gaurav Vangaal, associate director for Light Vehicle Production Forecasting at Mobility Global.
Emkay Global said the shift of Diwali from October last year to November this year had distorted year-on-year retail comparisons, masking healthy underlying demand.
"Strong festive demand, coupled with healthy momentum in both domestic and export markets, helped us set this new sales record," said Tarun Garg, managing director and CEO of Hyundai Motor India.
Growth faces post-festive test
While demand has remained resilient despite last year's tax-cut-led surge, analysts said the real test will come after the festive season. Rising input costs and supply constraints could weigh on growth in the coming months.
Emkay Global said it preferred two-wheeler and commercial vehicle makers over passenger vehicle companies, citing their greater ability to pass on higher commodity costs through price increases.
The passenger vehicle industry has sustained strong growth since the GST rate cuts last year. Lower borrowing costs have also improved affordability, while income tax reforms have left consumers with more disposable income.
In the first half of the current financial year, domestic passenger vehicle sales grew 28.3% to 20.55 lakh units.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onmaruti suzukihyundai motor indiaIndia car salespassenger vehicles October 2023Maruti Suzuki sales growthHyundaiMahindraMaruti SuzukiTata MotorsDiwali
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
...moreless(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onmaruti suzukihyundai motor indiaIndia car salespassenger vehicles October 2023Maruti Suzuki sales growthHyundaiMahindraMaruti SuzukiTata MotorsDiwali
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
...morelessContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
