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Informist, Thursday, Oct. 1, 2026

 

By Anand JC

 

MUMBAI – Domestic despatches of passenger vehicles grew at a healthy rate in September, as multiple price hikes in quick succession have not slowed sharply year-on-year wholesale sales growth. However, passenger vehicle sales at India's four largest listed carmakers collectively grew at the slowest pace since March.

 

The benefit of a low base resulting from anticipation of the goods and services tax cut and subsequent price reductions following the cut itself offset the price hikes in 2026, as despatches of passenger vehicles grew at a healthy rate during Apr-Sept. Newer products and better affordability have offset the multiple price hikes, while waiting periods across models have remained stable, according to analysts.

 

The passenger vehicle industry likely registered sales of around 460,000 units to domestic dealerships in September, up around 22% on year and roughly 2% on month. Research firm Nomura had pencilled in wholesale despatches of 463,000 passenger vehicles for September. In Apr-Sept, companies likely despatched around 2.67 million cars, up around 28% on year.

 

Monthly passenger-vehicle wholesale sales have averaged around 450,000-460,000 units in 2026-27 (Apr-Mar) so far. While automotive executives expect the year-on-year growth rate to moderate from the festival season onwards, they expect the momentum to sustain. "460,000 units (sales) is very much sustainable as an industry (going forward). Everyone is doing pretty well," Partho Banerjee, senior executive officer of Maruti Suzuki India Ltd.'s marketing and sales, told reporters in a virtual briefing Thursday.

 

"Tailwinds are there (boost from personal income tax cut, GST cut, and repo rate cuts in 2025), headwinds are also there. But more or less the auto industry has been able to mitigate it," Banerjee said. "I don't see any reason why in Q3 (Oct-Dec) we are going to face any problems," he said, adding that passenger vehicle sales will continue to grow from current levels in the festival season.

 

Domestic passenger vehicle despatches by listed carmakers – Maruti Suzuki, Mahindra & Mahindra Ltd., Tata Motors Passenger Vehicles Ltd., and Hyundai Motor India Ltd. – stood at 371,906 units in September, up 24% on year – the slowest on-year growth in the six months ended September.

 

Cumulative exports by Maruti Suzuki, Tata Motors PV, and Hyundai Motor in September stood at 66,369 units, up just over 6% on year and 39% on month. M&M did not provide car export data. In total, local sales and exports by the four companies were 438,275 units in September, up almost 21% on year and a little under 9% on month. The year-on-year growth rate was the slowest in the last three months.

 

Maruti Suzuki's Dzire, a sedan, retained its position as the top-selling car during Apr-Sept. "We have supply constraints (for the model), but we are seeing a huge demand for sedans," Banrejee said. Tata Motors PV also capitalised on the momentum in the sedan segment with the launch of the Aeris. Tata Motors PV's Punch became the highest-selling sports utility vehicle during the quarter.

 

SEPTEMBER PERFORMANCE

Maruti Suzuki sold 236,013 cars in India and overseas, up 24% on year. Domestic sales grew 30% on year to 191,794 units while exports grew just under 5% to 44,219 units. Despatches of its passenger cars grew 24% on year, but that of its utility vehicles surged 62%.

 

Historically known for smaller cars, Maruti Suzuki now sells around 56,000 SUVs per month, second only to the market leader, which sells around 5,000 units more a month. The carmaker plans to push SUVs in the festival season, especially the Brezza and Grand Vitara. Maruti Suzuki is offering blended discounts of around INR 14,000 per unit, the lowest in the last three months, according to Nuvama Institutional Equities.

 

Tata Motors PV sold 70,210 cars to dealerships in India and overseas in September, up 15% on year. Exports remain a small share of its overall sales. "We ended the quarter on a strong note, crossing the 70,000-unit sales milestone in September and look forward to carrying this momentum as we enter the festive period," its Managing Director and Chief Executive Officer Shailesh Chandra said in a release.

 

Penetration of electric cars in Tata Motors PV's portfolio surged to 23%, compared to around 8% for the industry. The Punch maker is the market leader in the electric car segment. "Looking ahead, we remain optimistic about the festive season, supported by a strong order book and healthy customer traction across the portfolio," Chandra said.

 

Waiting periods for Tata Motors PV's cars range up to 12 weeks across models, with Harrier on the upper end. Waiting period for its Sierra has moderated sharply to up to four weeks, depending on the variant, from up to 18 weeks seen in April, according to Nomura.

 

M&M's SUV despatches in September grew 14% on year to 64,092 units. Cumulative billings of its pure-electric SUVs crossed the 100,000-unit mark for the first time since launch. Portfolio-wide, blended discounts inched up to around INR 29,000 per unit last month, the highest since May. 

 

Hyundai Motor's car sales hit a monthly record high of 77,916 units in September, up almost 11% on year. Domestic sales grew 11% on year to 57,166 units while exports grew just over 10% to 20,750 units. "Going ahead, we are expecting sustained customer enthusiasm during the festive season, also supported by the opening of bookings for the Hyundai BAYON, our upcoming all-new nameplate for India," the Creta-maker's Managing Director and Chief Executive Officer Tarun Garg said in a release.

 

Hyundai Motor offered blended discounts of just over INR 24,000 per unit in September, a three-month low, according to Nuvama. Dealer discounts for Creta increased in September while Venue and Exter saw marginal dealer-led discounts, according to Nomura.  

End

 

Edited by Saji George Titus

 

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