Indian automakers post higher September sales as dealers stock up for festive season

Indian automakers reported higher sales in September as dealers stocked up ahead of the festive season, when vehicle purchases typically pick up on the back of discounts, new model launches and financing offers. Automakers usually increase dealer inventories ahead of the festive period to prepare for stronger demand. The rise in September sales came despite several major manufacturers raising vehicle prices this year to offset higher raw material costs. Also Read: In CAFE 3, auto companies have wider choices and a better view of the road Fuel price volatility, meanwhile, remains a potential risk to consumer appetite for new vehicle purchases. Hyundai Motor India reported an 10.8% increase in sales from a year earlier, marking its highest monthly sales. The company said it expects "sustained customer enthusiasm" during the festive season. The automaker also benefited from the opening of bookings for its upcoming Hyundai Bayon, adding to activity ahead of the key selling period. Mahindra & Mahindra reported a 14% rise in domestic sales in September, driven by strong demand for its sports utility vehicles. A decline in tractor sales, however, weighed on the company's overall performance. Also Read: Automakers widen powertrain bets as petrol dominance weakens Escorts Kubota also flagged weakness in tractor sales, citing a tougher comparison with September 2025, when sales had benefited from the reduction in GST rates. The company also attributed the softer demand to patchy monsoon conditions and relatively lower Kharif sowing. The September numbers come as automakers and dealers enter one of the industry's most important sales periods, with manufacturers typically stepping up promotions, financing offers and inventory ahead of the festive season.