Passenger vehicle (PV) dispatches to dealers are estimated to have touched a record for the month of August at around 450,000 units, as the country’s leading carmakers reported strong double-digit growth ahead of the festive season. The estimated volume is only around 1.7 per cent below July’s 457,810 units, the highest-ever July for the industry.
The near 40 per cent year-on-year jump, however, comes on an unusually weak base. PV wholesales had fallen 8.8 per cent to 321,840 units in August 2025, which the Society of Indian Automobile Manufacturers (SIAM) attributed primarily to manufacturers recalibrating dispatches. Recalibration was necessary as retail demand was affected after the government signalled GST rate rationalisation in mid-August, prompting some customers to defer purchases in anticipation of lower prices. The new rates were eventually approved in early September and took effect from September 22.
Maruti Suzuki, the country’s largest carmaker, estimates August 2026 industry wholesales at around 450,000 units, plus or minus 2,000-3,000 units. SIAM numbers will be published later in the month.
The strong growth was visible across the country’s largest manufacturers. Tata Motors led the pack, with domestic PV wholesales rising 59 per cent year-on-year to 65,253 units, while Mahindra & Mahindra’s domestic SUV sales increased 50 per cent to 59,257 units from 39,399 units. Maruti Suzuki’s domestic PV dispatches rose 35 per cent to 176,971 units, while Hyundai Motor India’s sales increased 23.6 per cent to 54,396 units, its highest-ever August. Tarun Garg, managing director and chief executive officer, Hyundai Motor India, said that domestic sales had grown 12.6 per cent year-on-year during April-August.
Together, Maruti, Tata Motors, Mahindra and Hyundai dispatched around 355,900 vehicles to dealers, accounting for nearly 79 per cent of the estimated PV market during the month.
The numbers come as manufacturers prepare for the crucial festive selling period. Maruti Suzuki has around 180,000 pending bookings, while dealer inventory stood at only around 16 days at the end of August.
“Whatever we are producing, we are able to just dispatch it to our channel partners,” said Partho Banerjee, senior executive officer, marketing and sales, Maruti Suzuki India. He said there were virtually no vehicles lying at the company’s factories and dealers required more supplies.
Maruti is producing around 8,000 vehicles a day, with its production and supply-chain teams working to maximise vehicle availability during the festive season. It is also adding 250,000 units of capacity each at Kharkhoda and Gujarat during FY27. The new Brezza has received more than 55,000 bookings in about 35 days, while retail sales in Kerala during Onam grew 61 per cent, according to the company.
Tata Motors Passenger Vehicles Managing Director and Chief Executive Officer Shailesh Chandra has also indicated that there remains significant scope for sustained industry growth in the second half, helped by lower inventory levels compared with last year. He expects full-year industry growth to exceed 10 per cent, even though second-half growth could moderate to below 10 per cent because of the higher base.
Mahindra & Mahindra, too, remains positive on festive demand. “Demand continues to remain strong across our portfolio, with the updated Scorpio-N and BE 6 SPORTEQ receiving strong market response from customers. We look forward to building on this momentum during the festive season,” said R Velusamy, president, Automotive Business.
The outlook also needs to be seen against last year’s unusual festive trajectory. The first 21 days of September remained muted before purchases picked up following the September 22 GST rate cuts and the onset of Navratri. PV retail grew 5.8 per cent in September and subsequently rose to a record 557,000 units in October as pent-up demand, festive purchases and improved affordability came together.
This year, those benefits are already embedded in the market, but the higher year-ago base is expected to moderate headline growth rates in the second half. Maruti continues to expect the PV industry to grow by at least 10 per cent in FY27.
“We have given an outlook that this year industry should grow by 10 per cent. And we stand by that,” Banerjee said, adding that first-half growth rates were unlikely to persist in the second half because of the base effect.
