Festive fever drives Oct car sales to record high

India’s car sales likely rose in double digits to a monthly record in October, as manufacturers stepped up dispatches to dealerships ahead of the Dhanteras and Diwali festivals.

Two-wheeler makers also posted strong growth, indicating demand from entry-level buyers this festive season. Replacement demand boosted sales of commercial vehicles.

According to initial industry estimates, 525,000-530,000 cars, utility vehicles and vans were dispatched from factories last month, a 13-14% increase from a year earlier. The previous record was 465,000 units reported in October 2025, when a reduction in goods and services tax had boosted demand.

Maruti Suzuki, Mahindra & Mahindra, Hyundai Motor India and Kia India all posted record monthly sales in October.

Market leader Maruti Suzuki reported a 21% increase, selling 212,384 vehicles in the domestic market in October.

“This is the highest-ever sales we have recorded in a month in the domestic market since inception. We have seen strong growth across categories, be it small cars or SUVs,” said Partho Banerjee, senior executive officer (market and sales) at Maruti Suzuki.

Demand for Maruti Suzuki’s CNG vehicles rose 40% from a year earlier. The company currently has pending bookings for 245,000 units and network stocks of 12 days.

At Tata Motors, passenger vehicle sales volume increased 21% to 73,894 units last month. Rival Mahindra posted a 2% increase at 73,338 units.

The local unit of Korean auto major Hyundai, which recently launched a new model in the fast-growing mid-SUV segment, dispatched 62,799 units to domestic dealerships, registering 16.7% growth. Including exports, its sales grew about 18% to 82,299 units in October.

“Strong festive demand, coupled with healthy momentum in both domestic and export markets, helped us set this new sales record,” said Hyundai Motor India chief executive Tarun Garg.

Kia India dispatched 33,462 units, registering 13.22% year-on-year growth.

Japanese auto major Toyota Motor’s Indian unit was among the few to buck the trend, reporting a 27% fall in sales to 29,521 units.

In the two-wheeler market, the country’s second largest two-wheeler maker, Honda Motorcycle & Scooter India (HMSI), sold 664,831 units last month, an 11% increase from a year earlier. At Chennai-based TVS Motor Company, domestic two-wheeler sales grew 22% at 514,764 units. At the premium end of the market, Royal Enfield’s sales grew 4% to 121,527 units.

In the commercial vehicle segment, market leader Tata Motors reported a 13% increase in dispatches to 39,784 units in October. Eicher-branded trucks and buses recorded sales of 9,676 units last month in India, up nearly 37% from a year earlier.

In farm equipment, Mahindra Tractors reported a 13% fall in sales at 62,626 units last month. “The volume decline was primarily due to the festive calendar shift, with Diwali moving to November this year from October last year,” said Veejay Nakra, president – Farm Equipment Business at Mahindra & Mahindra.