Demand for cars will remain strong during the festive season, but low stock and lack of supply can be a hindrance.

Consumer enthusiasm for car purchases is expected to be good during the festive season this year. Bookings are also going well, but not enough vehicles at dealerships may make it difficult for companies to meet the increased demand. Top 5 car companies of the country have more than 85 percent market share and these companies are also facing the challenge of increasing the stock.

The second major phase of the festive season will begin from October 11 with Navratri and will continue till November 10 till Diwali. According to industry officials, the demand for cars may remain good during this period. However, if companies do not have enough vehicles available, they may not be able to take full advantage of this demand. This period of October-November is very important for auto companies. About one-third of the cars sold throughout the year are sold during this festive period. In such a situation, the availability of the car during this period can play a big role in sales.

Maruti Suzuki has more than 2 lakh bookings pending

Maruti Suzuki, the country’s largest car company, currently has more than 2 lakh car bookings pending. It means that a large number of customers have booked the car, but they are still waiting for delivery. In comparison, the stock of cars in the company’s dealer network is about 16 days of sales.

Maruti Suzuki dealers usually have about a month’s worth of stock during the festive season. Partho Banerjee, senior executive officer of the company’s marketing and sales division, said the company had only 13 days of stock at the start of the financial year. Now it has increased to 16 days, but the pending bookings have crossed 2 lakhs.

He said the company does not expect to have a month’s stock ready before December. Maruti Suzuki’s new automated production line is also expected to be fully operational by December. After this, the production and availability of vehicles can be improved.

Maruti sales have increased by 35% this year

Maruti Suzuki’s sales have grown by around 35 per cent in the current financial year so far. At the same time, between April and August, the overall auto industry grew by about 30 percent. The company says that vehicle availability will be very important in the second half of the financial year. During the festive season, the days available for production also decrease, which can increase pressure on supply.

An official of another major car company said that to tap into the full potential of the festive season, companies will have to increase their stocks first. However, doing so this year has become a challenge. It is becoming difficult to supply vehicles as per the demand even in normal months.

According to him, sales in August and September have been good, but in October and November, companies may face difficulties. In such a situation, this festive season may see only a few percent increase in car sales compared to last year.

This time the atmosphere of festivities has spread

This year the festival calendar is more spread than last year. Onam is coming in August, Ganesh Chaturthi in September and Navratri, Dussehra and Diwali in October-November. At the same time, Navratri, Dussehra and Diwali were mostly in October last year. So, it will be a bit difficult to directly compare this year’s sales with last year’s sales.

Hyundai expects 5-6% industry growth from the second quarter

Hyundai Motor India has stock available for around 4 to 5 weeks before moving into the second half of the festive season. The company is also intensifying preparations to start a third shift at the Talegaon plant in Maharashtra. The move is being taken ahead of the launch of the upcoming mid-size SUV next month.

According to Tarun Garg, Managing Director, Hyundai Motor India, the industry growth may slow down in the second half of the current fiscal. He estimates that the industry could grow at around 5-6 per cent in the next six months due to the high base. He said that the company is hoping to achieve rapid growth in the market with the help of its two new models.

Tata Motors is also expected to increase sales

Tata Motors Passenger Vehicles also expects higher retail sales this festive season than last year. However, the company believes that the sales growth percentage may decline.

According to Amit Kamath, Chief Commercial Officer, Tata Motors Passenger Vehicles, the company is positive about the festive season and expects higher retail sales than last year. But due to the GST rate cut effective from September 22, 2025, the sales base was much higher last year. Hence, the annual growth percentage may appear lower this year.

More pressure on electric car supply

According to dealers, the stock issue is particularly prevalent in battery-powered electric cars. The rise in oil prices following the Iran-US conflict has fueled the demand for electric vehicles. In such a situation, the challenge for companies to meet the increased demand for EVs has also increased. Federation of Automobile Dealers Association President Sai Girdhar said that the festive season has started well. Dealers reported strong bookings during Onam, Rakshabandhan and Ganesh Chaturthi.

According to data from the federation, car retail sales rose by a record 23 percent between Dussehra and Diwali last year. Growth may slow this year due to last year’s strong sales. However, the biggest challenge for companies will be to provide enough cars to meet customer demand in October and November.

Maruti Suzuki’s Green Mission in Auto Sector Intensifies, First Green Hydrogen Plant Starts in Manesar