Why India's auto industry is optimistic this festive season
What's the story
This festive season, India's automotive industry is gearing up for a surge in demand. The period of Ganesh Chaturthi, Navratri, Dussehra, and Diwali is expected to see sustained vehicle demand despite last year's high base effect. The momentum from the previous year is likely to continue this time around. During Onam this year, the southern region saw organic inquiries rise by up to 12%, with Kerala leading passenger vehicle sales growth at an impressive 20% YoY increase.
Sales expectations
Last year's high base effect
To surpass last year's high base, the automotive industry needs to see a considerable rise in sales.
In October 2025, passenger vehicle wholesales grew by an impressive 17.2% YoY to 4,60,739 units from 3,93,238 units in the same month the previous year.
This growth was driven by a revision in GST rates and is expected to continue through the festive season with new launches and attractive discounts for consumers.
Sales projection
Maruti Suzuki optimistic about festive season
The automotive industry expects a growth of over 10% in FY27, with total passenger vehicle sales likely to touch around 53-54 lakh units.
Maruti Suzuki India's Senior Executive Officer for Marketing & Sales, Partho Banerjee, expressed optimism about the upcoming festive season, saying, "We are hopeful that this festival will be pretty good."
He added that its production and supply chain teams are working hard to meet market demand.
Dealer optimism
FADA expects strong consumer interest
The Federation of Automobile Dealers Associations (FADA) also expects the festive season to boost demand.
FADA President Sai Giridhar said nearly 82% of their members are optimistic about growth in the September-November period.
He noted that around 44% of dealers have already reported a growing booking pipeline, indicating strong consumer interest ahead of the festive season.