India’s automotive sector witnessed a remarkable recovery this festive season, with sales rising between 20% and 25% across all major carmakers. The growth was driven mainly by the return of demand for small cars, especially in rural and semi-urban markets.
Small Cars Make a Big Comeback
After four to five years of slow sales, the small car segment has bounced back with double-digit growth. Improved affordability, new GST rates, and attractive finance offers helped draw more buyers during the festive season that began on September 22, 2025.
Tata Motors Records Highest-Ever Festive Sales
Tata Motors Passenger Vehicles reported its highest-ever festive retail sales, crossing 1 lakh units — a 33% jump compared to last year. The Tata Nexon led the growth with 38,000 units sold, marking a massive 73% year-on-year increase. The Tata Punch followed with 32,000 units and a 29% rise.
Hyundai’s Festive Surge
Hyundai Motors India also saw a strong performance, selling more than 70,000 cars during the festive period. Retail sales grew by 30% year-on-year, while daily customer enquiries rose 10% to over 18,000 potential buyers per day.
Maruti Suzuki Sets New Dhanteras Record
Maruti Suzuki delivered a record-breaking 51,000 cars on Dhanteras alone. Since the new GST rates were announced, the company received 4.5 lakh bookings, with nearly 22% of them for small cars. This shows a clear revival in budget car demand among Indian families.
SUVs Continue to Dominate Sales
While small cars made a comeback, SUVs continued to drive the overall market momentum. Compact and mid-size SUVs remained the top-selling category for most automakers, reflecting India’s growing preference for spacious and feature-rich vehicles.
Industry Outlook
Industry experts expect the positive momentum to continue through the rest of the calendar year. With better rural demand, stable financing options, and new model launches planned for early 2026, India’s auto industry looks set for sustained growth.
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