Effect of tax cut! There was an influx of car buyers, car sales increased by 12.4% in October. auto-sector sale-festive-season-demand-car-sale-rises-more than 12 percent in October-2026

Festive Season Sale 2026: Festive season continues in the country. During this period, sales of domestic passenger vehicles crossed the record figure of 5 lakh in the month of October. Major auto companies like Maruti Suzuki, Hyundai and Mahindra & Mahindra have recorded their highest ever sales in the month of October. Wholesale sales of domestic passenger vehicles in October is estimated to be between 5.25 to 5.3 lakh units, whereas in October last year this figure was 4.6 lakh units. This is 12.4% more than last year.

According to the Society of Indian Automobile Manufacturers (SIAM), a strong growth of 24.9 percent has been recorded in the sales of passenger cars during the second quarter (July-September) of the financial year 2026-27. In conversation with NDTV, T.R. Rajeev Sahni, CEO and Director of Sahni Motors, said that there have been record sales of cars in this festive season. The biggest change in the car market is the huge surge in demand for SUVs. Those who had small cars are now turning to bigger cars. This is an important change as people are upgrading their cars.

Reasons for record sales of cars in the festive season

Reduction in GST rates last year, relief in income tax, affordable interest rates and continuous economic growth of 7 percent or more in recent years – all these are the main reasons for record sales of cars this festive season.

Car prices become affordable due to tax reduction

Chandan Thakur and Sarika, who bought a car for the first time in Preet Vihar, told that we are buying a car for the first time. Due to reduction in taxes, the price of cars has become affordable. Will take delivery of his first car on Dhanteras.