Indian Auto Dealers See Steady Sales Momentum in December

India’s retail vehicle sales are expected to remain robust through December, according to the Federation of Automobile Dealers Associations (FADA). A rebound in demand driven by recent tax cuts that made several vehicles cheaper, along with year-end festive incentives, has helped sustain sales. Retail auto sales in November grew 2.14%, defying concerns of a slowdown after the festive season.

Dealerships across the country are reporting improved customer enquiries, stronger inventory management, and additional demand from the ongoing wedding season. The government’s decision in September to slash the goods and services tax — from around 50% to 40% on SUVs above 1,500 cc and from 28% to 18% on small cars — has boosted consumer spending. In October, the first full month after the tax cut, customer deliveries surged a record 40.5%. Passenger vehicle inventory also declined to 44–46 days in November from 53–55 days the previous month, indicating faster sales turnover.

Carmakers are seeing demand outpace supply, with Maruti Suzuki reporting a 37% year-on-year jump in sales of its budget small cars in November, outperforming growth in its SUV category. According to FADA, 64% of auto dealers expect sales growth in December, while 74.3% foresee continued momentum over the next three months. The expected introduction of 2026 models, upcoming price hikes in January, wedding-season spending, and improved liquidity after crop harvest are likely to keep the market strong through early next year.

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