Traders attribute record sales to festive cheer, GST 2.0 reforms
Munish Sood
MANDI: This Diwali and Dhanteras season has turned into a celebration for India’s automobile industry, with showrooms across the country, including in Mandi and other parts of Himachal Pradesh, witnessing record-breaking sales.
From compact cars to SUVs, the festive glow has powered a sharp rise in both bookings and deliveries, reflecting a strong revival in consumer confidence.
India’s auto sector recorded its highest-ever festive sales, with passenger vehicle demand growing 40.5% year-on-year, according to industry data.
The three-month festive window till Bhai Dooj each year contributes nearly one-third of annual retail sales for automakers.
As per industry estimates, 11.38 lakh passenger vehicles, including hatchbacks, sedans, and SUVs, were sold nationwide this season compared to 8.1 lakh last year. SUVs remained the most sought-after segment, while two-wheelers too registered healthy growth, reflecting rising demand from semi-urban and rural buyers.
Dhanteras was magical this year, say Mandi dealers
In Mandi, local dealerships have been buzzing with activity since Navratri, but the real rush came during Dhanteras and Diwali.
Anil Kakkar, who owns multiple Kia and Volkswagen showrooms in Mandi and other districts, said this festive season has been one of the most promising in recent years.
“We saw a 25 to 30 per cent rise in sales during Dhanteras and Diwali week. Many families had been waiting for the right time to take delivery and this time, the excitement was unmatched. Our showrooms remained packed from morning till late evening,” he said.
Kakkar said that deliveries were spread over several days due to auspicious timings, giving dealers more flexibility to manage the crowd. He also acknowledged that GST 2.0 reforms that made smaller cars more affordable “have certainly played a background role in reviving overall sentiment.”
Hyundai’s sales jump amid festive optimism
Sandeep Sharma, General Manager at Dev Bhoomi Automobiles, which operates Hyundai and Škoda showrooms across Mandi and other districts, said the festive season brought a wave of positivity to the market.
“This year, Diwali truly brought light to the auto sector. Sales have gone up by around 15 to 20 per cent compared to last year. Customers were more decisive and confident, and festive finance schemes added to their enthusiasm,” Sharma shared.
He noted that while brand offers and emotional factors drove much of the growth, GST 2.0’s pricing effect indirectly encouraged many middle-class buyers to move ahead with their purchase decisions.
Festivals bring emotions, not just sales, says Maruti unit GM
Lokinder Vaidya, General Manager of Competent Automobiles (Maruti Suzuki), described the season as a time when “emotions meet economics.”
“For Indian families, buying a car on Diwali or Dhanteras is not just about convenience but a symbol of success. We delivered hundreds of cars over the festive week, with pujas and celebrations at every delivery point,” he said.
Maruti Suzuki recorded 35 to 40 per cent growth this season, led by strong demand for models like Alto, Swift, Celerio and Wagon R. “The festive atmosphere, coupled with attractive finance options, has brought families back to showrooms in big numbers,” he added.
Mahindra records steady performance
The high-end segment also saw movement, though at a slower pace. Arun Mahajan, Sales Head at Mahindra, said sales grew by 5 to 10 per cent during Diwali compared to last year.
“Our SUVs like Scorpio and XUV700 remain strong performers. Even though this category is less price-sensitive, there’s definitely a renewed enthusiasm in the market,” Mahajan said.
He added that automakers benefited from extended delivery schedules this year, with Dhanteras and Diwali handovers spread over several days due to auspicious timings, giving companies a longer sales window.
Momentum building year after year
This growth isn’t a one-time festival bump. In October 2024, India’s auto market had already recorded a 1.8% year-on-year increase in passenger vehicle sales, while the 42-day festive period saw a 12% rise in overall automobile retail sales.
Industry insiders believe the combination of positive market sentiment, better affordability, attractive finance options, and festive fervour has created the perfect recipe for success.
With festive deliveries still ongoing in parts of Himachal Pradesh, Mandi’s auto dealers are confident that the sales momentum will continue into the winter.
As one senior dealer summed it up: “This Diwali, people didn’t just buy cars but celebrated stability, prosperity and hope. The sparkle is back on the roads, and it feels like the industry has truly shifted into the next gear.”
