India's auto sales hit record high on festive fervor

India's passenger vehicle (PV) market has achieved a significant milestone, with wholesales exceeding 5 lakh units for the first time in October. This surge represents an estimated 13-15% year-on-year growth, even when compared to the strong performance of October last year. Automakers strategically increased dispatches to dealerships in anticipation of heightened festive season demand, with key festivals like Dhanteras and Diwali occurring in early November.

Market leader Maruti Suzuki reported a record 2.12 lakh domestic passenger vehicle dispatches, marking a 20% increase over the previous year. Tata Motors also saw substantial growth, with a 21% rise in domestic wholesales to 73,894 units. Hyundai Motor India recorded its highest-ever sales, reaching 62,799 units, a 16.7% increase. Mahindra & Mahindra reported sales of 73,338 units, a 2% growth.

This robust performance is attributed to several factors, including the reduction in GST rates implemented last year, which has sustained strong growth momentum. Additionally, lower borrowing costs have improved vehicle affordability, and recent income tax reforms have boosted consumers' disposable income, further stimulating demand. The first half of the current financial year saw domestic PV sales grow by 28.3% to 20.55 lakh units.