Banerjee says affordability gains and a normal monsoon could sustain growth momentum.
01 Jan 2026 | 2537 Views | By Kiran Murali and Ketan Thakkar
Maruti Suzuki expects India’s passenger vehicle market to grow by 6–7% in 2026, supported by improving affordability, stable macro conditions, and sustained consumer demand, even as supply-side constraints continue to shape production planning.
Speaking at the company’s December sales briefing, Partho Banerjee, senior executive officer – marketing and sales, ...
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Maruti Suzuki expects India’s passenger vehicle market to grow by 6–7% in 2026, supported by improving affordability, stable macro conditions, and sustained consumer demand, even as supply-side constraints continue to shape production planning.
Speaking at the company’s December sales briefing, Partho Banerjee, senior executive officer – marketing and sales, said the demand momentum seen in the second half of 2025 is expected to carry into the new year, aided by policy support and easing cost pressures.
“From October onwards, the market has seen strong traction. GST rationalisation, income tax relief, and a 100 basis point cut in interest rates have all helped demand recover,” Banerjee said. “If these tailwinds continue and the monsoon remains normal, there is no reason why the auto industry should not grow at 6–7% in 2026.”
Maruti Suzuki closed the calendar year 2025 with its highest-ever retail sales of 1.87 million units, capping a year marked by a recovery in entry-level demand and sustained traction across segments. December proved particularly strong, with 286,000 vehicles retailed, even as dealer inventory fell to just three days' supply, underscoring tight supply conditions.
Pending bookings stood at around 175,000 units, reflecting what the company described as “strong underlying demand” across urban and nonurban markets.
The automaker said the revival was driven in part by improved affordability following GST revisions and easing interest rates, as well as better consumer sentiment. Demand from smaller towns and rural markets has picked up sharply, with growth beyond the top 100 cities outpacing that in major metros.
“We are seeing excellent traction not just in the top cities but beyond them as well,” Banerjee said. “Post-GST, the response has been particularly encouraging.”
Maruti Suzuki also highlighted a recovery in the entry-level car segment, which had come under pressure earlier due to rising costs and regulatory changes. While production constraints remain, the company said it has been carefully balancing output across segments to avoid skewing supply toward any single category.
“We are operating with very tight inventories and are trying to serve customers across segments fairly,” Banerjee said, adding that production planning continues to be calibrated to manage demand without creating excessive waiting periods.
Industry-wide, India’s passenger vehicle market is estimated to have closed 2025 at around 4.5 million units, up from roughly 4.3 million units in 2024, marking another step in the market’s post-pandemic recovery.
While Maruti Suzuki remains cautious on supply-side challenges, the company expects the broader demand environment to remain supportive in 2026, provided macroeconomic stability and policy continuity are maintained.