Automakers including Maruti Suzuki, Hyundai Motor India, and Mahindra & Mahindra have raised production and dealer inventory ahead of the festive season.
Maruti Suzuki has the maximum number of bookings at 2.2 lakh. Mahindra will have 68,000 monthly capacity for SUV and EV. Hyundai will have 4-5 weeks of dealer inventory. With positive sentiment, these three automakers will be able to meet the demand for vehicles.
Maruti Suzuki: 2.2 Lakh Pending Bookings, 16 Days Of Stock
Maruti Suzuki India (MSI) has 2.2 lakh unfulfilled orders with about 16 days of stock. It was 12 days of stock at the beginning of FY27 (April 2026). MSI will see a jump in sales during the festive season.
Supply Side
MSI will add 5 lakh units of capacity with two new production lines that will be commissioned soon. These lines will add to the existing 13.5 lakh capacity. Production will stabilize by the end of the year and will reduce the waiting period.
Dealer Inventory
MSI dealers had a stock of 12 days of inventory at the beginning of FY27. Currently, it has increased to 16 days. While it is lower than the average 45-day dealer inventory (Federation of Automobile Dealers Association), it is sufficient to meet the demand.
Management Outlook
The company is confident about the festive season sales. “On the supply side, the rainfall deficit will not impact sales from our perspective. We expect absolute sales to be strong, but the growth rate may come down on a year-on-year basis due to a high base,” said the company’s management.
Hyundai Motor India: 4-5 Weeks Of Dealer Inventory
Hyundai Motor India Limited (HMIL) will build up dealer inventory at the beginning of the festive season. It has about 4-5 weeks of inventory with its dealers. This will help them in meeting the demand of the festive season.
Strategy
“We feel that the balance between bookings and stock for dealers to serve customers in the festive season will help in converting more bookings into sales,” Tarun Garg, Director of Sales, Marketing, and Service, HMIL, said.
Popular Models
It has a significant amount of inventory of its popular SUV Creta,Venue, i20, and the newly launched Bayon. The Creta is one of the best-selling SUVs and has a decent amount of inventory.
Sales Performance
Hyundai witnessed a 10.8% sales growth in recent months as customers are upbeat about buying cars and new models have opened up bookings. It expects the festive season sales to grow further.
Mahindra & Mahindra: 68,000 Units Monthly Capacity For SUVs And EVs
Mahindra & Mahindra has increased its SUV and EV production capacity to 68,000 units per month during the first half of 2026. The increased production capacity will help in reducing the waiting period for its popular SUVs and EVs.
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Focus On SUVs And EVs
Mahindra has ramped up its production of utility vehicles and EVs as it witnessed an unprecedented demand for its SUVs and EVs during the last couple of months. The Scorpio-N, XUV700, Thar, and XEV 9e were in demand, and customers had to wait for months to get these vehicles. The 68,000 units monthly capacity will help in reducing the waiting period.
Waiting Period
Reducing the waiting period for its vehicles is one of Mahindra’s primary goals. It wants to make sure that customers do not have to wait for long to get their desired vehicle. The 68,000 units monthly capacity will help in achieving this target.
EV Push
Mahindra has been pushing its electric vehicles, and the response has been overwhelming. XEV 9e and BE 6e have received rave reviews from customers. The company will be able to meet the demand for these electric SUVs during the festive season with the increased production capacity.
Industry Context: Record Inventory, Strong Demand
Festive season is the peak sales period for the auto industry. As of the end of September 2026, passenger vehicle dealers had a stock of about 45 days, close to a one-year high. Manufacturers dispatched 4.6 lakh vehicles to dealers during the month and 4.27 lakh units were sold by them compared to 4.58 lakh units sold in August 2026. Thus, dealers’ inventory increased by nearly 33,000 vehicles during the month.
Discounts And Margins
While the inventory is a good sign for meeting demand, it has put downward pressure on dealer margins. Increasing discounts and vehicle prices have compressed the dealers’ margins. However, automakers are confident that they will be able to meet the festive season demand.
Supply Meets Demand
The festive season of 2026 will be a crucial period for India’s auto industry. Maruti Suzuki, Hyundai, and Mahindra have taken steps to ensure that supply meets demand during the peak season. Consumers will benefit from the increased supply and reduced waiting period. The festive season will be a litmus test for India’s auto industry. It will give an impulse to the automotive sector as the industry heads into the second half of FY27.
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