India’s automobile industry witnessed a historic surge in demand during October, with passenger vehicle dispatches reaching an estimated monthly record of 5.25 to 5.30 lakh units. This performance represents a 13% to 14% increase compared to the same period last year. Industry experts attribute the record-breaking numbers to heightened consumer enthusiasm ahead of the Dhanteras and Diwali festivals, prompting manufacturers to increase supply to dealership networks across the country.
The previous record for monthly dispatches stood at 4.65 lakh units, reported in October 2025. The significant leap this year highlights the sustained momentum in the automotive sector, where entry-level buyers, as well as those seeking SUV and utility vehicle upgrades, contributed to the overall growth. While the passenger segment led the charge, the two-wheeler and commercial vehicle sectors also recorded healthy growth, reflecting a broad-based recovery in automotive demand.
Market leader Maruti Suzuki reported its highest-ever monthly sales since the company's inception, selling 212,384 vehicles in the domestic market, a 21% increase. Partho Banerjee, senior executive officer for marketing and sales at Maruti Suzuki, noted that the growth was consistent across all categories, including small cars and SUVs. Furthermore, demand for the company’s CNG-powered vehicles saw a notable 40% jump compared to the previous year. Maruti Suzuki currently maintains a pending booking order of 245,000 units with 12 days of network stock.
Other major manufacturers shared the positive trend. Tata Motors saw its passenger vehicle volumes rise by 21% to 73,894 units. Hyundai Motor India dispatched 62,799 units domestically, marking 16.7% growth, a success attributed by chief executive Tarun Garg to the combination of strong festive demand and solid performance in export markets. Kia India also recorded a 13.22% year-on-year increase, with 33,462 units dispatched. Meanwhile, Mahindra & Mahindra reported a more modest 2% growth, totaling 73,338 units. Toyota Motor’s Indian unit was a notable exception to the overall market performance, reporting a 27% decline in sales to 29,521 units.
The two-wheeler market also exhibited robust activity. Honda Motorcycle & Scooter India (HMSI) experienced an 11% year-on-year growth with 664,831 units sold. Similarly, TVS Motor Company reported a 22% growth in domestic two-wheeler sales, reaching 514,764 units, while Royal Enfield saw a 4% increase with 121,527 units. In the commercial vehicle sector, Tata Motors recorded a 13% increase in dispatches, totaling 39,784 units, while Eicher-branded trucks and buses saw a significant surge of nearly 37%, with 9,676 units recorded.
In contrast, the farm equipment sector faced a setback, as Mahindra Tractors reported a 13% fall in sales to 62,626 units. Veejay Nakra, president of the Farm Equipment Business at Mahindra & Mahindra, explained that the volume decline was primarily driven by the shifting festive calendar, noting that Diwali falls in November this year, whereas it occurred in October last year.
Looking ahead, the industry remains focused on managing inventory levels and meeting the pending demand accumulated during the festive rush. As manufacturers balance production capacities with market demand, the record-breaking October figures have provided a substantial boost to the automotive industry's outlook for the remainder of the fiscal year.
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