Indian automakers post higher September sales as dealers stock up for festive season

Indian automakers reported higher sales in September as dealers stocked up ahead of the festive season, when vehicle purchases typically pick up on the back of discounts, new model launches and financing offers.

Automakers usually increase dealer inventories ahead of the festive period to prepare for stronger demand. The rise in September sales came despite several major manufacturers raising vehicle prices this year to offset higher raw material costs.

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Fuel price volatility, meanwhile, remains a potential risk to consumer appetite for new vehicle purchases.

Hyundai Motor India reported an 10.8% increase in sales from a year earlier, marking its highest monthly sales. The company said it expects "sustained customer enthusiasm" during the festive season.

The automaker also benefited from the opening of bookings for its upcoming Hyundai Bayon, adding to activity ahead of the key selling period.

Maruti Suzuki India sold 236,013 units in September 2026, including 185,252 units in the domestic market, 6,542 units to other OEMs and 44,219 units through exports.

Tata Motors Passenger Vehicles recorded 201,723 units in domestic and international sales in Q2 FY27, up 40% from 144,397 units in the year-ago quarter. September sales crossed the 70,000-unit mark, making it the company’s highest-ever quarter as it heads into the festive season.

Tata said greener powertrains remained a key growth driver, with EV sales hitting a quarterly record of more than 47,000 units, up 90% year-on-year, and EV penetration rising to 23%. CNG sales also reached a record quarterly level, accounting for 28% of volumes. Together, EVs and CNG vehicles contributed 51% of Tata’s sales in the quarter.

Mahindra & Mahindra reported a 14% rise in domestic sales in September, driven by strong demand for its sports utility vehicles. A decline in tractor sales, however, weighed on the company's overall performance.

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Escorts Kubota also flagged weakness in tractor sales, citing a tougher comparison with September 2025, when sales had benefited from the reduction in GST rates.

The company also attributed the softer demand to patchy monsoon conditions and relatively lower Kharif sowing.

The September numbers come as automakers and dealers enter one of the industry's most important sales periods, with manufacturers typically stepping up promotions, financing offers and inventory ahead of the festive season.