Maruti Suzuki, Hyundai, Tata Motors Set To Raise Production by 40% After GST Slash

Maruti Suzuki, Hyundai, Tata Motors to Raise Output by Up to 40% After GST Cuts.

India’s leading automakers — Maruti Suzuki, Hyundai Motor India, and Tata Motors — are planning to ramp up vehicle production by 20–40% in the coming months, buoyed by strong post-GST-cut demand, The Economic Times reported.

Maruti Suzuki, the country’s largest carmaker, aims to produce over 200,000 vehicles in November, compared to an average of 172,000 units per month till September — a record for a month that usually sees lower dispatches after the festive season.

Tata Motors has asked suppliers to prepare for monthly output of 65,000–70,000 units, up from an average of 47,000 units in the first half of the fiscal. Hyundai Motor India, meanwhile, has begun operating two shifts at its Talegaon plant in Maharashtra, expanding its capacity by up to 20%.

Demand Surge After GST Cuts
Passenger vehicle retail sales hit an all-time high of 557,373 units in October, supported by festive demand and the boost from lower GST rates.

Maruti Suzuki’s retail sales grew 20% to a record 242,096 units in October. “Our production teams are working overtime, including some Sundays, to maximise supplies and reduce waiting periods,” said Partho Banerjee, Senior Executive Officer (Marketing and Sales). The company currently holds 104,000 units in stock and has pending orders for 350,000 vehicles.

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

Amit Kamat, CCO, Tata Motors Passenger Vehicles, said festive momentum and GST benefits had lifted retail sales, adding that the company expects the growth to continue through the second half of FY26, supported by new launches and a healthy order book.

Industry Outlook
Maruti Suzuki expects the passenger vehicle market to grow around 6% in H2FY26, reversing the 1% dip recorded in the first half. According to S&P Global Mobility, the demand spike post-GST cut could lift 2026 production growth forecasts to 6–7%, up from the earlier estimate of 1–2%.

In the first half of FY26, India’s car, sedan, and SUV production rose 3.8% to 2.57 million units, exports climbed 18% to 445,884 units, while domestic wholesales slipped 1.4%, according to data from SIAM.