Maruti Suzuki sees India’s PV market reaching 54 lakh units in FY27

MUMBAI: India’s car market appears to have found another gear, and Maruti Suzuki expects it to keep accelerating. The passenger vehicle (PV) market could reach 53-54 lakh units in FY27, helped by stronger demand and improving affordability, Maruti Suzuki India said.

Partho Banerjee, Senior Executive Officer, Marketing and Sales, Maruti Suzuki India, said the industry is currently averaging around 4.5 lakh vehicles a month. If that pace continues, annual sales would broadly match the company’s projection. He was speaking at a media roundtable during the 66th Annual Convention of the Society of Indian Automobile Manufacturers (SIAM).

The forecast represents a 14-16 per cent increase over the 46.43 lakh PVs sold domestically in FY26. SIAM data showed that the market itself grew 7.9 per cent in FY26, from 43.02 lakh units in FY25.

A mix of policy and financing changes has made the price of getting behind the wheel a little easier to swallow. GST restructuring, income-tax relief and lower interest rates have reduced the upfront purchase burden, eased down-payment requirements and brought down monthly loan repayments, according to Banerjee.

Now comes the festive test. Maruti Suzuki is expecting seasonal demand to add another push, with the company recording a 60 per cent market share in Kerala during Onam, its highest-ever in the state based on VAHAN registrations. First-time buyers accounted for 54 per cent of the Kerala market, highlighting the role of new customers in driving demand.

“We are looking at a good festive season, that much I can only say,” Banerjee said.

The company is also keeping a close eye on inventory. Maruti Suzuki’s dealer stock currently stands at around 16 days, well below the roughly 30 days it considers comfortable for the festive period.

That matters because festive shoppers tend to want their new cars when the celebration arrives, rather than waiting weeks for delivery. Banerjee said production is currently being matched by sales, with wholesale and retail volumes broadly at par.

Maruti Suzuki itself sold 18.23 lakh PVs domestically in FY26, up 3.5 per cent. But the broader competitive picture shows just how lively the market has become. Mahindra grew 19.7 per cent to 6.60 lakh units, while Tata Motors increased sales 14.4 per cent to 6.51 lakh units.

Hyundai, meanwhile, saw domestic PV sales decline 2.3 per cent to 5.85 lakh units.

With affordability improving, inventories being watched closely and the festive season approaching, Maruti’s 53-54 lakh-unit FY27 forecast puts the Indian PV market on course for another sizeable year — provided that monthly sales keep their current momentum.