Maruti Suzuki, Hyundai, Tata Motors Plan 40% Production Surge Following GST Reduction

Maruti Suzuki, Hyundai, Tata Motors To Ramp Up Production After GST Cuts.

India’s top carmakers — Maruti Suzuki, Hyundai Motor India, and Tata Motors — are preparing to ramp up production by 20–40% over the next few months, anticipating sustained demand following the recent Goods and Services Tax (GST) cuts, The Economic Times reported.

Maruti Suzuki, the country’s largest automaker, plans to produce more than 200,000 vehicles in November, up from an average of 172,000 units a month until September — marking a record high for a month that typically sees lower volumes after the festive season.

Tata Motors has asked its suppliers to prepare for monthly output of 65,000–70,000 vehicles, compared with an average of 47,000 units during the first half of FY26. Meanwhile, Hyundai Motor India has introduced two shifts at its second plant in Talegaon, Maharashtra, to expand capacity by up to 20%.

Demand Surge Post-GST Cuts

Passenger vehicle (PV) sales hit a record 557,373 units in October, driven by festive demand and lower GST rates, leaving dealership inventories thin.

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

Hyundai’s COO Tarun Garg said the tax cuts have given sales a strong boost. “We were capacity-constrained earlier, but with the Pune plant operational, production should rise by about 20%. We also expect to strengthen our portfolio with new models and added capacity,” he noted.

Amit Kamat, CCO at Tata Motors Passenger Vehicles, added that the festive season momentum and GST-driven demand had boosted sales. “We expect the growth to continue in the second half of FY26, supported by new launches and a strong order book,” he said.

Industry Outlook Turns Positive

Maruti Suzuki expects strong sales in the second half of the fiscal year and projects the PV industry to grow around 6% in H2FY26, reversing a 1% decline in the first half.

According to S&P Global Mobility, while its 2025 production forecast remains unchanged, the demand surge following the GST cuts is likely to lift 2026 projections. “Before the tax cuts, we expected a 1–2% rise in vehicle production for 2026. Now, it could be closer to 6–7%,” said Gaurav Vangaal, Associate Director, Light Vehicle (India Subcontinent).

Overall, India’s car, sedan, and utility vehicle output rose 3.8% to 2.57 million units in H1FY26. Exports increased 18% to 445,884 units, while domestic wholesales slipped 1.4%, according to data from the Society of Indian Automobile Manufacturers (SIAM), which is yet to release October figures.