India’s passenger vehicle market is witnessing strong growth in FY27, with carmakers reporting record sales amid festive demand and the impact of GST rate rationalisation. However, rising input costs and fresh vehicle price increases could test whether this momentum can continue in the coming months.
According to the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle wholesales rose 28% year-on-year to 2.64 million units in the first half of FY27. Sales in the second quarter increased 30% to 1.37 million units.
Maruti Suzuki reported a 37.8% increase in domestic wholesale volumes to 5,65,000 units in Q2 FY27. Hyundai Motor India's domestic sales also grew 18.8% to 1,65,772 units.
Demand remained strong despite recent price increases. Maruti Suzuki's pending customer orders rose from 2 lakh at the end of September to 2.7 lakh by October 20, according to company management. The automaker expects domestic sales to grow by at least 10% in the second half of FY27.
Hyundai Motor India is targeting 8–10% domestic sales growth for the financial year, supported by new launches, including its SUV Beyond.
October sales figures further reflected the industry's momentum. Maruti Suzuki recorded its highest-ever monthly domestic sales of 2,16,789 units, up 20% year-on-year. Mahindra & Mahindra reported record domestic SUV sales of 73,338 units, while Hyundai registered domestic sales of 62,799 units, an increase of 16.7%.
The outlook remains positive, but affordability could become a bigger concern if vehicle prices continue to rise. Higher costs may put pressure on manufacturers and buyers alike. Whether strong demand can absorb these increases will be an important factor for India's automobile industry in the months ahead.
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