Maruti Suzuki, Hyundai Motor India, and Tata Motors are among carmakers expanding capacities by 20-40 per cent in the coming months, optimistic that a sharp revival in demand after the goods and services tax (GST) cuts will sustain next year.
India’s largest carmaker Maruti Suzuki is aiming to produce more than 200,000 vehicles in November, compared to the 172,000 units manufactured on average every month till September, said people aware of the company’s plans.
The production plan will be a record for November, a period traditionally marked by companies dialling down dispatches with the end of the festive fervour.
Tata Motors has asked suppliers to prepare for rolling out 65,000-70,000 vehicles every month, up from 47,000 units produced on average every month in the fiscal first half. Hyundai Motor India, meanwhile, has commenced two shifts at its second plant in Talegaon, Maharashtrato boost capacity by up to 20 per cent.
Maruti Suzuki, Hyundai, and Tata Motors declined to comment on their production plans.
Retail sales of passenger vehicles in India soared to a record 557,373 units last month on the back of strong festive demand and post the GST cuts, depleting stocks at dealerships.
Maruti Suzuki’s retails alone rose 20 per cent to a monthly high of 242,096 units in October. Partho Banerjee, senior executive officer, marketing and sales said the company had 104,000 vehicles in stock to last up to 19 days, and pending orders for 350,000 units at the start of November. “Our production teams are working overtime, even on a few Sundays, to maximise supplies and reduce wait time,” said Banerjee.
Tarun Garg, chief operating officer at Hyundai Motor India, said the GST cuts sharply boosted sales. “We (at Hyundai) were constrained by capacity (earlier). But now with the Pune plant coming in, we should see an upside (in production) by 20 per cent,” he said, adding the company expects to strengthen its footprint with new products and the incremental capacity going ahead.
Amit Kamat, chief commercial officer, Tata Motors Passenger Vehicles said the festive season “has brought strong momentum to our retail performance, supported by healthy network stock levels and the positive impact of GST benefits.”
The automaker expects to continue the growth momentum in the fiscal second half backed by factors such as a strong order book and new launches.
Maruti Suzuki too expects healthy sales growth in the fiscal second half. The company indicated in a recent post-earnings call that the car industry should grow by 6 per cent in H2FY26, rebounding from a drop of about 1 per cent in the first half.
S&P Global Mobility, which forecasts production and sales on a calendar year basis, has not made any changes in growth forecasts for 2025 as sales got disrupted between the announcement of the rate cut on August 15 and actual implementation from September 22. It expects the demand surge to make up for the shortfall earlier, extending into the New Year.
Gaurav Vangaal, associate director, light vehicle, India sub-continent, at S&P Global Mobility said prior to the tax cuts, he expected vehicle production to rise 1-2 per cent in 2026. “We now feel this would be much higher at 6-7 per cent,” he said.
Overall, production of cars, sedans, and utility vehicles in the domestic market rose by 3.8 per cent to 2.57 million units in the first six half of this fiscal year. While exports rose by 18 per cent to 445,884 units in this period, local wholesales fell by 1.4 per cent, per data from the Society of Indian Automobile Manufacturers’ (Siam). SIAM is yet to release wholesale and production data for October.
