Record Dhanteras Car Sales in India Driven by Consumer Demand

India’s automotive sector experienced a significant surge in sales during the recent Dhanteras festival, with leading manufacturers achieving their best-ever performance. Major companies such as Maruti Suzuki, Hyundai Motor India, and Tata Motors reported impressive double-digit growth compared to the previous year. This increase reflects a robust rebound in consumer demand, fueled by the introduction of GST 2.0 price cuts and a general uplift in sentiment among buyers.

During this year’s Dhanteras, which spanned from October 21 to October 22, 2023, Maruti Suzuki recorded its highest sales figures to date. The company anticipated delivering approximately 51,000 vehicles over the two-day period, a remarkable increase from last year’s record of 41,500 units. According to Partho Banerjee, Senior Executive Officer of Marketing & Sales at Maruti Suzuki, the company’s daily bookings averaged around 14,000, contributing to a total of 450,000 bookings since the GST cut was implemented. Retail sales during the festive season alone surpassed 325,000 units, marking a 50 percent increase year-on-year.

Momentum Continues for Hyundai and Tata Motors

The momentum seen at Maruti Suzuki was echoed at Hyundai Motor India, where demand that began during the Navratri festival carried through to Dhanteras. Tarun Garg, Whole-time Director and COO of Hyundai, noted a sharp acceleration in sales during this festive period. Hyundai sold around 14,000 cars during Dhanteras, representing a 20 percent increase from the previous year. The company also observed a significant rise in dealer billings and customer inquiries, with billings exceeding 11,000 units on the first day of Navratri, the highest in five years.

For Tata Motors, the festive season also proved fruitful, with the company projecting deliveries of over 25,000 vehicles between Dhanteras and Diwali. Amit Kamat, Chief Commercial Officer for Tata Motors’ Passenger Vehicles, highlighted a growth rate of around 30 percent in Dhanteras sales compared to last year, attributing this success to the optimism generated by GST 2.0 reforms.

Wider Impacts on the Automobile Market

The overall sentiment within the automotive market reflects these strong sales figures. Saharsh Damani, CEO of the Federation of Automobile Dealers Associations (FADA), reported that retail sales during Dhanteras increased by 20–25 percent year-on-year, indicating a robust consumer appetite for vehicles. This surge in demand is expected to carry forward into the upcoming marriage season and December, traditionally a strong period for car sales.

As the automotive industry responds to this heightened demand, manufacturers are adapting their production strategies. Maruti Suzuki, for instance, operated its plants over the weekend to meet the growing needs of consumers. The effects of GST 2.0 and positive market sentiment have clearly played a pivotal role in shaping this festive sales season, showcasing the resilience and dynamism of India’s automotive sector.

With these impressive sales numbers, the future appears bright for car manufacturers in India, as they navigate the evolving landscape of consumer preferences and economic conditions.