Key Takeaways
- Indian car sales hit record 4.70 lakh units in October, up 17% year-on-year
- GST reduction to 18% and festive demand drove unprecedented growth
- Toyota led with 43% growth while Hyundai was the only major player to decline
India’s automotive industry celebrated its highest-ever monthly domestic sales in October, with carmakers dispatching 4.70 lakh units – a robust 17% increase compared to the same period last year. The Diwali festive season combined with reduced GST rates created the perfect storm for unprecedented demand.
GST Reduction Fuels Record Sales
October marked the first full month after the government slashed GST rates on small cars from 28% to 18% in late September. The tax cut, coupled with removal of cess, significantly boosted consumer sentiment and purchasing power across the country.
Automakers operated factories at full capacity and extended showroom hours to meet the overwhelming demand. The festive period saw manufacturers struggling to keep up with customer orders despite maximum production efforts.
Major Automaker Performance
Maruti Suzuki, India’s largest carmaker, reported 10% growth with 176,318 units dispatched to dealers. The company’s utility vehicles like Brezza and compact models like Swift experienced demand outstripping supply. Remarkably, Maruti had 350,000 pending bookings awaiting delivery as of Friday.
Mahindra & Mahindra recorded impressive 31% growth, selling 71,624 units including electric SUVs. The SUV specialist launched new editions of Thar, Bolero and Bolero Neo during the month.
Tata Motors saw SUVs dominate its portfolio with an all-time high 77% share. The company posted 27% growth in wholesales reaching 61,295 units, while its electric vehicles achieved record monthly sales with 15% portfolio penetration. Between Navratri and Diwali, Tata delivered over 1 lakh vehicles, marking 33% year-on-year growth.
Mixed Performance Across Brands
Hyundai Motor India was the only major player to record declining volumes, with sales dropping 3% to 53,792 units. The decline was attributed to phasing out the existing Venue model, which will be replaced by a new version next week.
“We witnessed robust market demand and high consumer enthusiasm, leading to second-highest monthly sales. We expect to accelerate this momentum with the upcoming launch of the all-new Venue, which is already open for bookings,” said Tarun Garg, whole-time director and chief operating officer, HMIL.
Toyota Kirloskar Motor emerged as the growth leader among peers with 43% volume increase to 40,257 units for Fortuner and Innova models.
“The favourable economic environment during the festive season, reinforced by the GST reforms, boosted market confidence. At TKM, this has resulted in a significant rise in customer enquiries and order intakes, collectively driving our overall performance,” explained Varinder Wadhwa, vice-president, sales-service-used car business, TKM.
