India's passenger car market reached a historic peak in October:Retail sales rose to 557,373 units as holiday demand and lower GST (Goods and services tax) sharply stimulated purchases and depleted dealer inventories, the Economic Times reported.
The main automakers — Maruti Suzuki, Hyundai Motor India and Tata Motors — are responding with aggressive capacity expansion by 20-40% in the coming months, envisioning that the recovery will last until 2026. Maruti is planning record production in November of more than 200,000 vehicles, Tata has asked suppliers to maintain monthly production to 70,000 units, and Hyundai has added changes at its Talegaon plant to increase capacity by 20%. Maruti's retail sales increased by 20% to 242,096 units, supported by a significant backlog of 350,000 vehicles. Hyundai and Tata report similar dynamics, attributing the increase in demand to a reduction in the Goods and Services Tax (GST).
Industry analysts including S&P Global Mobility currently expect production growth of 6-7% in 2026, well above previous estimates, and India's electric vehicle market is projected to grow from $2 billion in 2023 to over $7 billion by 2025, with annual electric vehicle sales It may reach 10 million units by 2030. Despite a 1.4% drop in domestic wholesale sales at the beginning of the fiscal year, total production increased by 3.8% to 2.57 million units, while exports increased by 18%, underpinning expectations for sustained industry growth.
