The numbers look grim on the surface. FADA logged a 22% year-on-year crash in passenger vehicle retail sales during the Navratri period, dropping to 1,82,728 units from 2,34,004 the previous year. But context is everything here. Last year’s baseline was artificially inflated because buyers rushed to purchase before the GST rate cuts hit on September 22, 2025. That price drop unleashed a flood of pent-up demand, making this year’s comparison a difficult one to beat. It’s not a signal of weak demand so much as a statistical artifact of a very strong prior year.
On the ground, the story is different. Maruti Suzuki, which holds nearly half the market, isn’t worried. Partho Banerjee, senior executive officer for marketing and sales, notes that retail sales between Ganesh Chaturthi and Dussehra actually jumped 35% year-on-year. SUV sales doubled, and small cars grew by 16%. More importantly, the order book swelled from 2 lakh pending bookings at the start of October to 2.7 lakh after Dussehra. That’s a massive backlog. Banerjee expects double-digit growth to continue through Diwali, suggesting the festive pulse is strong despite the noisy headline figures.
Hyundai Motor India is telling a similar tale. Their registrations rose about 30% year-on-year to nearly 41,000 units up to Navratri. Tarun Garg, MD & CEO, points to steady demand in both urban and rural markets, fueled by earlier festivals like Onam and Ganesh Chaturthi. He’s confident the momentum will carry through Dhanteras and Diwali. For buyers, this means dealerships are likely to be busy, and while the headlines talk about a decline, the actual availability and incentive structures are likely to remain competitive as companies push to clear those growing order books.
The real takeaway for the industry is that the GST cuts have permanently reset consumer expectations. Buyers now remember that prices can drop, and they wait for the next opportunity. But for this festive season, the major players—Maruti, Hyundai, and Tata, who together account for two-thirds of PV sales—are betting that the underlying desire for mobility is intact. The 22% drop is a mirage created by a high base, not a sign of a market in retreat. Watch the Diwali week numbers; if the 2.7 lakh Maruti backlog converts to deliveries, the festive season will be declared a success.