**New Delhi, October 20, 2025** — India’s automobile industry is in overdrive this festive season, with carmakers experiencing an unprecedented surge in demand that's set to smash previous sales records. From the bustling showrooms of major cities to the reviving markets of rural India, consumers are flocking to dealerships, fueled by auspicious buying sentiments and a significant boost from recent policy changes. This wave of enthusiasm is translating into robust growth across the board, with market leader Maruti Suzuki reporting a staggering increase in its festive period retail sales. The festive cheer is palpable, as major players like Maruti Suzuki, Tata Motors, and Hyundai Motor India are all posting impressive sales figures. Maruti Suzuki, the nation's largest carmaker, has seen its festive period retail sales climb by over 50% compared to last year, reaching 3.25 lakh units so far. Th^[1][2][3][4]is remarkable performance is setting the stage for what many predict will be the industry's most successful festive season to date. ### The Full Story The current festive season, spanning Navratri, Dussehra, and the ongoing Dhanteras and Diwali periods, has ignited a buying frenzy. This year, the auspicious Dhanteras period even stretched over two days, from Saturday afternoon into Sunday, giving eager customers an extended window to make their purchases. Th^[5][3][6]is timing, combined with a crucial policy reform, has proven to be a game-changer for the auto sector. A significant driver of this booming market is the introduction of "GST 2.0 reforms," which have effectively reduced vehicle prices and significantly boosted consumer confidence. Th^{[5][1][7][2][3][4][8][9][6]}is has made cars more affordable, drawing in buyers across various income segments. Partho Banerjee, Senior Executive Officer, Marketing & Sales at Maruti Suzuki, highlighted the impact, stating, "Retail has touched 3.25 lakh units so far — breaking all records for Maruti Suzuki with more than 50% growth over the same period last year". He a^[2][3][4]lso noted that the company expects to deliver around 51,000 vehicles over the two-day Dhanteras period alone, marking a nearly 23% increase from last year's 41,500 units. Maru^{[5][2][3][4][6]}ti has received 4.5 lakh bookings since the GST 2.0 price cuts were announced, with 1 lakh of those for small cars. To k^[1][2][3][4]eep up with this unprecedented demand, production teams are even working through weekends. But^[1][2][3][4] here's the thing: it's not just Maruti Suzuki reaping the benefits. Tata Motors is also experiencing robust growth, anticipating over 25,000 vehicle deliveries during the extended Dhanteras and Diwali period, which translates to a substantial 30% year-on-year sales increase. The ^[1][2][3]company had already reported its highest-ever monthly passenger vehicle sales in September 2025, with 60,907 units sold, marking a 47% year-on-year surge and allowing them to reclaim the second position in India’s overall passenger vehicle market. Hyunda^[10][11]i Motor India isn't far behind, expecting to deliver around 14,000 vehicles this Dhanteras, reflecting a solid 20% growth compared to last year. What'^[1][2][3][4]s more, the festive spirit has brought a much-needed revival to India's rural markets. Thanks to favorable monsoons, strong farm output, and government support schemes like increased Minimum Support Price (MSP) for crops, rural consumers are showing renewed purchasing power. This i^[12][7]s particularly evident in the two-wheeler segment, which saw a double-digit increase in sales ahead of the festive season, with a 15.4% jump in the first 10 days of the festive season in 2024, and a robust 14.2% year-on-year growth in domestic sales in October 2024. Online^[12][13] platforms like Flipkart and Amazon even reported a more than twofold increase in two-wheeler demand this year. ### W^[14]hat This Means This surge in auto sales is a clear indicator of strengthening consumer sentiment and economic recovery. For everyday people, it means more accessible vehicle ownership due to attractive pricing and financing options. Dealerships are buzzing with activity, and manufacturers are ramping up production, creating jobs and stimulating the broader economy. The immediate consequence is a bustling market, with many customers driving home new vehicles and contributing to the festive atmosphere. Industry experts are anticipating that this momentum will continue, potentially leading to a record-breaking financial year for the auto sector. The focus on customer deliveries and meeting demand also means that companies are working hard to ensure a smooth buying experience, even during peak periods. **Key Points:** * India's auto sector anticipates its most successful festive season ever in 2025. * Ma^[7][8][9]ruti Suzuki's festive period retail sales have increased by over 50% year-on-year, reaching 3.25 lakh units. * Ta^[1][2][3][4]ta Motors expects over 25,000 deliveries this Dhanteras-Diwali, marking a 30% growth. * Hy^[1][2][3]undai Motor India projects around 14,000 Dhanteras deliveries, a 20% increase. * GS^[1][2][3][4]T 2.0 reforms and renewed rural demand are key factors driving this growth. * Th^{[5][7][10][3][8][9]}e overall festive season growth rate is currently at 20% and expected to rise further. ### T^[7]he Bigger Picture This impressive performance isn't just about festive sales; it tells a larger story about India's economic resilience and evolving consumer preferences. The significant uptake in SUVs, for instance, continues to be a major trend, with these vehicles accounting for 65% of total sales and driving growth for many automakers. Hyunda^[8][15]i, for example, reported its highest-ever monthly SUV sales in October 2024, at 37,902 units. Mahind^[16][17][15]ra & Mahindra, with its SUV-only portfolio, also saw its highest-ever monthly sales of 96,648 units in October 2024, a 20% increase. The p^[18]ositive impact of government policies, particularly the GST 2.0 reforms, underscores how strategic economic decisions can directly translate into consumer spending and industry growth. This period is being hailed as a "Bachat Utsav" (savings festival) by industry bodies like FADA, signifying increased affordability and confidence. While ^[9]some challenges like high dealer inventory were noted in late 2024, the cu^[19]rrent surge in retail sales is helping to normalize these levels, suggesting a healthier balance between supply and demand. ### W^[20]hat Happens Next? As the festive season continues towards Diwali, automakers are expected to maintain their aggressive marketing and discount strategies to capitalize on the sustained demand. Dealer^[21]s are preparing for all-time high sales, with a clear focus on fulfilling existing bookings and attracting new customers. Maruti^[9] Suzuki, for instance, is also looking forward to a "few lakhs marriages" slated for November to carry forward the sales momentum. We ca^[22][20]n anticipate more new model launches and an expansion of hybrid offerings, as manufacturers seek to meet diverse consumer aspirations and capitalize on the market's positive trajectory. The in^[8]dustry will be closely watching how the momentum carries into the post-festive period, but for now, the outlook remains overwhelmingly positive, promising a vibrant end to the year for India's auto sector.

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