India’s passenger vehicle industry expected to cross 53 lakh units in FY27: Maruti Suzuki
Small cars, in particular, are witnessing a sharp revival. Maruti Suzuki India’s Senior Executive Officer, Marketing & Sales, Partho Banerjee said the company sold more than 21,000 WagonR units and around 10,000 Alto units last month.
- Sep 4, 2026,
- Updated Sep 4, 2026 9:49 AM IST
India’s passenger vehicle industry is expected to cross the 5.3-million-unit mark this financial year, with demand remaining strong after the Goods and Services Tax (GST) cut last year, according to Maruti Suzuki India’s Senior Executive Officer, Marketing & Sales, Partho Banerjee.
At the 66th SIAM Annual Convention, Banerjee said that he expects the industry to sell around 53-54 lakh vehicles during the financial year, compared with about 48 lakh units last year, implying growth of more than 10%. The auto industry is currently averaging around 4.5 lakh units a month, Banerjee added.
He said the growth momentum has been particularly strong in the lower-priced segment following the recent changes in goods and services tax (GST). Vehicles attracting 18% GST have seen growth of more than 30%, while the 40% GST segment has also grown by around 20%.
According to Banerjee, the improvement in affordability is bringing more first-time buyers into the market, a trend that could support further motorisation in India.
“The share of first-time buyers is now 54%,” he said, adding that Maruti Suzuki has seen a nearly 10% year-on-year increase in the proportion of first-time buyers.
Small cars, in particular, are witnessing a sharp revival. Banerjee said Maruti Suzuki sold more than 21,000 WagonR units and around 10,000 Alto units last month.
The growth in the small-car segment is currently around 83%, although Banerjee cautioned that the rate is likely to moderate as the comparison base rises.
He attributed the revival to three factors: the reduction in GST, tax benefits that have left more money in consumers’ hands and lower interest rates, which have reduced EMIs.
Maruti Suzuki, however, is facing tight inventory as it heads into the festive season. Banerjee said its dealer network currently has around 16 days of stock, compared with an ideal level of at least 30 days during the festival period.
“The market demand is more,” he said, adding that production and supply-chain teams are working to ramp up output. The company expects its new production lines to reach full capacity over the next three to four months.
Banerjee also highlighted the growing contribution of rural markets, with Maruti Suzuki’s rural penetration reaching 53%.
CNG continues to be an important part of the company’s multi-powertrain strategy, accounting for around 43% of its portfolio.
Maruti Suzuki has announced plans to invest ₹77,500 crore over the next four financial years. It also plans to introduce seven new SUVs over the next five years across different segments and powertrains, including a small electric SUV.
India’s passenger vehicle industry is expected to cross the 5.3-million-unit mark this financial year, with demand remaining strong after the Goods and Services Tax (GST) cut last year, according to Maruti Suzuki India’s Senior Executive Officer, Marketing & Sales, Partho Banerjee.
At the 66th SIAM Annual Convention, Banerjee said that he expects the industry to sell around 53-54 lakh vehicles during the financial year, compared with about 48 lakh units last year, implying growth of more than 10%. The auto industry is currently averaging around 4.5 lakh units a month, Banerjee added.
He said the growth momentum has been particularly strong in the lower-priced segment following the recent changes in goods and services tax (GST). Vehicles attracting 18% GST have seen growth of more than 30%, while the 40% GST segment has also grown by around 20%.
According to Banerjee, the improvement in affordability is bringing more first-time buyers into the market, a trend that could support further motorisation in India.
“The share of first-time buyers is now 54%,” he said, adding that Maruti Suzuki has seen a nearly 10% year-on-year increase in the proportion of first-time buyers.
Small cars, in particular, are witnessing a sharp revival. Banerjee said Maruti Suzuki sold more than 21,000 WagonR units and around 10,000 Alto units last month.
The growth in the small-car segment is currently around 83%, although Banerjee cautioned that the rate is likely to moderate as the comparison base rises.
He attributed the revival to three factors: the reduction in GST, tax benefits that have left more money in consumers’ hands and lower interest rates, which have reduced EMIs.
Maruti Suzuki, however, is facing tight inventory as it heads into the festive season. Banerjee said its dealer network currently has around 16 days of stock, compared with an ideal level of at least 30 days during the festival period.
“The market demand is more,” he said, adding that production and supply-chain teams are working to ramp up output. The company expects its new production lines to reach full capacity over the next three to four months.
Banerjee also highlighted the growing contribution of rural markets, with Maruti Suzuki’s rural penetration reaching 53%.
CNG continues to be an important part of the company’s multi-powertrain strategy, accounting for around 43% of its portfolio.
Maruti Suzuki has announced plans to invest ₹77,500 crore over the next four financial years. It also plans to introduce seven new SUVs over the next five years across different segments and powertrains, including a small electric SUV.