Maruti Suzuki, Hyundai, Tata Motors To Boost Production By 40% After GST Cuts

Maruti Suzuki, Hyundai Motor India, and Tata Motors are gearing up to expand their production capacities by 20–40% over the coming months, buoyed by expectations of sustained demand following the recent goods and services tax (GST) cuts, The Economic Times reported.

India’s largest carmaker, Maruti Suzuki, plans to produce over 200,000 vehicles in November, up from an average of 172,000 units per month till September, according to people familiar with the matter. This would mark a record production figure for November, a month typically characterised by lower dispatches post the festive season.

Tata Motors has instructed suppliers to gear up for monthly production of 65,000–70,000 vehicles, compared with an average of 47,000 units during the first

half of the fiscal year. Meanwhile, Hyundai Motor India has started operating two shifts at its second plant in Talegaon, Maharashtra, to raise capacity by up to 20%.

Passenger vehicle retail sales in India surged to a record 557,373 units in October, fuelled by festive season demand and the post-GST-cut boost, leaving dealership inventories low.

Maruti Suzuki’s retail sales jumped 20% to an all-time monthly high of 242,096 units in October. Partho Banerjee, Senior Executive Officer (Marketing and Sales), said the company currently has around 104,000 units in stock (enough for 19 days) and pending orders for 350,000 vehicles. “Our production teams are working overtime, including some Sundays, to maximise supplies and reduce waiting periods,” Banerjee noted.

Hyundai’s Chief Operating Officer Tarun Garg said the GST cuts gave sales a strong push. “We were capacity-constrained earlier, but with the Pune plant operational, production should rise about 20%. We also expect to strengthen our portfolio with new products and added capacity,” he said.

Amit Kamat, Chief Commercial Officer, Tata Motors Passenger Vehicles, said festive momentum had lifted retail performance, supported by adequate stock levels and the GST-driven boost in demand. He added that the company expects growth to continue in the second half of FY26, aided by new launches and a strong order book.

Maruti Suzuki also foresees robust sales in the second half of the fiscal year. During its post-earnings call, the company projected that the passenger vehicle industry could grow around 6% in H2FY26, reversing the roughly 1% decline seen in H1FY26.

According to S&P Global Mobility, production and sales forecasts for 2025 remain unchanged, as sales were briefly disrupted between the GST rate-cut announcement on August 15 and its implementation on September 22. However, it expects the ongoing demand surge to offset the earlier shortfall and continue into 2026.

Gaurav Vangaal, Associate Director, Light Vehicle (India Subcontinent), at S&P Global Mobility, said: “Before the tax cuts, we projected a 1–2% rise in vehicle production for 2026. Now, we expect it to be much higher at 6–7%.”

Overall, production of cars, sedans, and utility vehicles in India rose 3.8% to 2.57 million units in the first half of FY26. Exports grew 18% to 445,884 units, while domestic wholesales fell 1.4%, according to the Society of Indian Automobile Manufacturers (SIAM), which is yet to release October data.