India’s automakers are counting on festive discounts, refreshed models and strong SUV demand to carry October’s sales momentum into the Dhanteras–Diwali buying period in November. But a K-shaped recovery is emerging: popular SUVs face tight supplies, while slower-moving cars require substantial incentives and rural commuter motorcycles struggle to regain momentum.
Mahindra & Mahindra is witnessing “very strong demand” across its SUV portfolio, with physical dealership stocks close to zero across most models, said Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector.
“We are operating at full capacity, with our October volumes exceeding the capacity levels we had indicated earlier,” Jejurikar said. Mahindra has less than eight to nine days of SUV inventory, excluding vehicles in transit, and maintains its mid-to-high-teen SUV growth outlook for FY27.
Hyundai Managing Director and CEO Tarun Garg attributed the record October sales to strong festive demand, with scope for continued momentum during Diwali.
Domestic passenger vehicle dispatches reached an estimated record 5.25–5.30 lakh units in October.
“At Cars24, we delivered 750 cars on the first day of Navratri alone, registering 58 per cent year-on-year growth and nearly five times our usual Sunday volumes,” said Cars24’s CFO for India, Shivanshu Makkar.
Partho Banerjee, Sr. Executive Officer, Marketing & Sales, Maruti Suzuki India, said: “We are expecting to deliver around 30,000 vehicles on Dhanteras this year. What is particularly encouraging is that the strong momentum is not limited to one day. From Ganesh Chaturthi on September 14 to November 6, we have recorded retail sales of over 4 lakh vehicles, compared to 3.46 lakh units during the same period last year.
“The Brezza and Baleno with minor model changes have received a very good response. Within a span of just two months, Baleno sales have crossed the 50,000 mark and Brezza sales have crossed 70,000, with both having huge pending bookings”.
Channel checks with dealers and industry watchers indicate manufacturers and dealerships are wooing festive buyers with discounts and feature upgrades. Indicative benefits reach ₹5.5 lakh on the outgoing Volkswagen Tiguan stock and ₹3.35 lakh on select Tata Curvv EV variants, while popular models command minimal discounts. Offers vary by city, dealership and variant.
Yet manufacturers’ optimism contrasts with dealer expectations. Only 51.65 per cent of dealers surveyed by the Federation of Automobile Dealers’ Associations (FADA) expect November retail growth, against 75.57 per cent ahead of October.
“Record dispatches show manufacturers are preparing for strong festive deliveries. But popular SUVs can face waiting periods, while slower-selling models accumulate. Matching supplies to demand matters because inventory financing costs continue after the festive rush,” said Vinkesh Gulati, former FADA President and Chairperson, Automotive Skills Development Council.
“Our pressing concern is inventory,” FADA President Sai Giridhar said. Industry-wide passenger vehicle stocks remained at 43–45 days, against Mahindra’s substantially lower SUV inventory.
October vehicle retail sales fell 23.80 per cent year-on-year to 31.72 lakh units, although registrations rose 25.05 per cent over September. Passenger vehicle retail sales declined 14.23 per cent to 5.08 lakh units.
“To our mind this is the signature of demand deferred by the festival calendar, not demand destroyed,” Giridhar said.
Two-wheeler registrations fell 28.35 per cent to 23.21 lakh units, with rural sales declining 33.97 per cent against 20.77 per cent in urban markets.
“November should capture two-wheeler purchases deferred for Dhanteras and Diwali, but the recovery will be uneven. Rural buyers remain sensitive to farm incomes, vehicle prices and monthly instalments. Premium motorcycle demand has different drivers, so a busy Jawa or Yezdi showroom alone cannot establish that the broader commuter market has recovered,” said Sachin Mahajan, Maharashtra State Chairperson, FADA, who operates Jawa and Yezdi dealerships through Mahaveer Wheels.
Festive discounts may help clear accumulated stocks, but sustaining affordable-vehicle demand beyond Diwali remains the industry’s bigger concern, Mahajan added
Published on November 6, 2026
