Indian automakers ramp up output ahead of peak festive season

India's major automakers are intensifying production efforts and building inventory levels across their dealer networks to meet surging demand as the country enters the peak festive shopping season. The coordinated push reflects confidence in sustained customer interest and a bid to reduce extended waiting periods that have characterized the market in recent months.

Maruti Suzuki India, the country's largest carmaker, is managing 2.2 lakh pending customer bookings ahead of the festive period. According to the company's Senior Executive Officer Partho Banerjee, this order backlog represents approximately 16 days of stock before the festive season begins. The manufacturer has already commissioned two new production lines, collectively adding 5 lakh units of annual capacity to its existing operations, which stood at just 12 days of inventory at the start of the financial year.

Competitors are deploying similar strategies to capture festive demand. Hyundai Motor India has accumulated four to five weeks of inventory across its nationwide dealer network, positioning itself to fulfill orders quickly. Mahindra & Mahindra has expanded its manufacturing footprint, scaling utility vehicle and electric vehicle production capacity to 68,000 units monthly in a direct effort to slash waiting times and improve supply availability.

The manufacturing expansion comes as India's automotive sector eyes substantial growth during the festive quarter, traditionally the strongest selling season. By building dealer stocks and commissioning fresh production capacity, automakers aim to translate sustained customer interest into higher retail sales volumes while managing the supply-demand balance more effectively.