PV domestic wholesales up 21% in September on low base from GST rejig

Domestic passenger vehicle wholesales reached 463,081 units in September, with Maruti Suzuki reporting 36.9 per cent growth as small cars and CNG models gained momentum

The domestic wholesale of passenger vehicles (PVs) increased by 21.4 per cent year-on-year (Y-o-Y) to 463,081 units in September, primarily due to a low base because of the significant changes in goods and services tax (GST) rates that were implemented on September 22 last year. The industry had wholesales of 381,435 units in September 2025.

 

GST rate changes were announced on September 3, 2025, which created uncertainty among buyers and dealers for much of the month. The revised rates took effect from September 22. Customers, understandably, deferred car purchases until the lower tax rates kicked in.

 

The GST rate on small cars was reduced to 18 per cent from 28 per cent, while larger cars were moved to a flat 40 per cent rate with the compensation cess removed. PV sales were muted during the first three weeks of September 2025 and surged after September 22, coinciding with the start of Navratri.

  

On Thursday, Maruti Suzuki India Ltd (MSIL), the country's largest carmaker, said its domestic wholesales stood at 181,838 units in September, up 36.9 per cent from 132,820 units in the year-ago month.

 

Partho Banerjee, senior executive officer, marketing and sales, MSIL, said three major tailwinds were driving the automobile industry: GST 2.0 that came into effect an year ago, a reduction of up to 100 basis points (bps) in the repo rate (the interest rate at which the Reserve Bank of India lends to commercial banks), and the income-tax benefit for individuals earning up to ₹12 lakh per year. 

 

 

 

Banerjee said the recovery in small cars was broadening and was not limited to a single strong month. Maruti's small-car sales had grown 34 per cent cumulatively through September, with the growth continuing month after month. He also pointed to strong demand for hatchbacks and sedans, saying Baleno clocked 25,000 units in the first month after its minor update, while Swift continued to sell 80,000-90,000 units consistently.

 

CNG vehicles have emerged as another major growth area for Maruti, with the company offering CNG variants across 14 models. Banerjee said CNG vehicles accounted for 41 per cent of Maruti's total sales, surpassing the company's target of taking the share to 40 per cent. He added that the company was trying to increase supplies further as it had backorders across its CNG range.

 

On the broader market outlook, Banerjee retained his estimate that the PV industry would reach 5.3-5.4 million units in financial year 2026-27 (FY27), representing growth of at least 10 per cent. He expects the growth rate to moderate in the second half (H2) of FY27 because of the higher base. However, he said absolute volumes should continue to increase. Banerjee also expects the industry to perform well during the upcoming festive season.

 

Maruti is also increasing SUV supplies as demand remains strong in the segment, which accounts for around 57 per cent of the overall industry's wholesales. Banerjee said the company had raised monthly SUV supplies from around 50,000 units in Q1 to 56,000 units currently. Production of Baleno, Swift, and other small cars has also been increased, with the new automatic production lines expected to be fully operational by the end of the year.

 

Tata Motors Passenger Vehicles (TMPV) registered domestic wholesales of 68,810 units in September, rising 15.3 per cent Y-o-Y.

 

Shailesh Chandra, managing director and chief executive officer (MD & CEO) of TMPV, said: “Q2FY27 was our highest ever quarter, with sales of 201,723 units and industry-beating growth of 40 per cent Y-o-Y."

 

"Our greener powertrain portfolio continued to be a significant growth driver. Electric vehicles (EVs) recorded their highest ever quarterly sales of over 47,000 units, growing 90 per cent Y-o-Y. EV penetration in our portfolio rose sharply to 23 per cent, compared with around 8 per cent for the industry," he said.

 

"Customer response remained strong across our portfolio, with Punch emerging as India’s highest-selling SUV during the quarter... Looking ahead, we remain optimistic about the festive season, supported by a strong order book and healthy customer traction across the portfolio,” he noted.

 

Mahindra & Mahindra (M&M) reported domestic PV sales of 64,092 units in September, an increase of 14 per cent Y-o-Y.

 

Hyundai Motor India Ltd (HMIL) sold 57,166 vehicles in the domestic market in September, up 10.9 per cent Y-o-Y. In September 2025, the company had sold 51,547 units.

 

Tarun Garg, MD & CEO of HMIL, said the company registered a healthy double-digit growth in September. This number surpassed the company’s previous record achieved in July 2026. "The well-rounded growth across domestic and exports markets is a testament to the strong appeal of our product portfolio... Going ahead, we are expecting sustained customer enthusiasm during the festive season," he added.

 

Kia India posted its highest ever monthly sales since entering the Indian market, with domestic wholesales reaching 32,017 units, a 41 per cent increase from 22,700 units in September 2025.

 

Toyota Kirloskar Motor, meanwhile, recorded domestic sales of 25,027 units in September, down 7.6 per cent from 27,089 units in the year-ago month.