Passenger vehicle sales jump 21.7% to 4.6 lakh units in September; Maruti, Hyundai, Tata Motors lead growth

Passenger vehicle (PV) dispatches in the domestic market are estimated to have risen around 21.7% year-on-year (YoY) to 4.60 lakh units in September 2026, compared with around 3.78 lakh units in the same month last year, according to industry estimates. The industry entered the festive season on a stronger footing, with major automakers reporting double-digit growth in September volumes, while several companies recorded their highest-ever monthly or quarterly sales.

The September growth, however, came on a relatively low base, with vehicle sales last year impacted for nearly 22 days ahead of the rollout of GST 2.0. Carmakers also benefited from lower GST rates, reduced borrowing costs following repo-rate cuts and changes in income-tax slabs. New model launches and higher supplies to dealerships ahead of the festive season also supported wholesale volumes.

Maruti, Hyundai, Tata Motors drive September volumes

Maruti Suzuki India sold 2,36,013 units in September, up 24.4% from 1,89,665 units a year earlier. Domestic PV sales jumped nearly 37% to 1,81,838 units, compared with 1,32,820 units in September 2025. Utility vehicle sales rose to 78,911 units from 48,695 units, while exports increased to 44,219 units. For April-September, Maruti's domestic PV sales reached 10,80,240 units, against 7,95,446 units in the corresponding period last year.

Maruti Suzuki India Senior Executive Officer (Marketing and Sales) Partho Banerjee said the company's strong September performance was also supported by higher production and supplies from its newly commissioned plant. “The reason (for strong sales) is very simple. The ramp up is going on for our new plant which has been commissioned and we can increase our supplies resulting in increasing the number of wholesales,” Banerjee said.

Banerjee added that the industry could see different growth trajectories depending on the GST rate structure. “In case of 18 per cent GST, vehicle sales growth in the industry is estimated to be around 29 per cent. However, Maruti has grown by 35 per cent in H1. And if we talk about 40 per cent GST, it is expected that the industry will be around 20 per cent growth,” he said.

Maruti currently has a pending order book of around 2 lakh units, while its network stock stands at approximately 17 days.

Hyundai Motor India Limited recorded its highest-ever total monthly sales of 77,916 units, including exports, up 10.8% YoY. Domestic sales rose 10.9% to 57,166 units, while exports increased 10.4% to 20,750 units.

Tarun Garg, MD & CEO, HMIL, said the September performance surpassed the company's previous record achieved in July. He said the company expected sustained customer enthusiasm during the festive season, supported also by the opening of bookings for the Hyundai Bayon, its upcoming all-new nameplate for India.

Tata Motors Passenger Vehicles (TMPV) recorded domestic PV sales of 68,810 units in September, up 15% from 59,667 units a year earlier. Including international business, total PV sales stood at 70,210 units. Q2 FY27 sales reached a record 2,01,723 units, up 40% from 1,44,397 units in Q2 FY26. EV sales across domestic and international markets rose 67% YoY to 15,384 units in September, while quarterly EV sales surged 90% to 47,150 units.

Shailesh Chandra, MD and CEO, TMPV, said, "PV demand had sustained the momentum seen following GST 2.0, despite Q2 being seasonally softer. He pointed to industry Vahan volumes growing around 24% YoY, led by increasing adoption of greener powertrains, and said this provided a positive backdrop for the festive season."

Chandra said Q2 FY27 was TMPV's highest-ever quarter, with 2,01,723 units and 40% YoY growth, while September sales crossed the 70,000-unit mark. He also highlighted the company's powertrain mix, with EVs recording their highest-ever quarterly sales of more than 47,000 units, up 90% YoY.

Mahindra, Kia also post double-digit growth

Mahindra & Mahindra (M&M) recorded domestic utility vehicle sales of 64,092 units, up 14% YoY. Overall auto sales, including exports, stood at 1,14,874 units, up 15%. Dr Velusamy R, President, Automotive Business, said SUV sales grew 14% in September and overall vehicle sales rose 15%. He also said Mahindra had crossed 1 lakh billing of its Electric Origin SUVs since launch.

Kia India recorded its highest-ever monthly wholesale sales since entering the Indian market at 32,017 units, up 41% from 22,700 units in September 2025. Q3 sales rose 38.5% to 89,259 units, while January-September sales increased 22.5% to 2,53,008 units.

Atul Sood, Senior Vice President, Sales & Marketing, Kia India, said the September and Q3 performance reflected the strength of the company's evolving portfolio. He identified the Seltos and Sonet as key contributors, while the response to the Sorento and Syros EV supported Kia's expansion into new segments and powertrain categories. Sood said the company was focused on offering greater choice across conventional, CNG, hybrid and electric powertrains as mobility requirements become increasingly diverse.

JSW MG Motor India reported a 19% YoY increase in wholesale dispatches to 8,018 units in September.

With Navratri expected to mark the beginning of the peak festive period in October and Diwali falling in November, automakers are entering the season with higher supplies, expanded portfolios and healthy order books, according to industry representatives.

The industry, however, will be comparing against a stronger festive-season base last year, when pent-up demand followed the GST rate changes.

Maruti Suzuki's Banerjee stated that the industry was expecting robust demand during the peak festive season, although the growth rate could be lower than last year's festive period, when the market benefited from pent-up demand following the rollout of the new GST rates.