If there was ever doubt about the power of Indian consumers, the past few months have settled it. After the government’s historic GST cut on passenger vehicles, demand has come roaring back, and Maruti Suzuki is feeling the heat in the best possible way.
Tax reductions of 5–10% don’t happen often, and when they do, they tend to change the customer behaviour quickly. That’s exactly what unfolded in the car market. After a sluggish first half of FY26, where passenger vehicle sales dipped slightly, the industry clocked a stunning 20.5% growth in the December quarter. For India’s largest carmaker, the rebound was even sharper.
Maruti Suzuki’s domestic sales surged 22% in Q3 FY26, a dramatic turnaround from the decline seen earlier in the year. The biggest boost came from small cars, models that fall in the lower 18% GST bracket, making them far more attractive to value-conscious buyers. But demand hasn’t been limited to one category. From compact hatchbacks to premium SUVs, customers are lining up across the showroom floor.
So strong has the response been that Maruti’s factories were running on Sundays and holidays to keep pace, say Maruti Suzuki’s senior officials at a recent conference call with analysts. The company recorded its highest-ever quarterly retail sales of around 6.84 lakh vehicles. By the end of the quarter, dealer inventory had fallen to just 3–4 days, an unusually tight level, while pending bookings stood at a healthy 1.75 lakh cars. In simple terms: customers are buying faster than cars can be supplied.
Recognising this shift early, Maruti moved quickly on expansion. A second plant at its Kharkhoda facility is set to go live by April 2026, followed by a new production line at its Gujarat plant. Each will add around 2.5 lakh cars of annual capacity. The company has also announced another greenfield manufacturing unit in Gujarat. The GST reform, it says, hasn’t just boosted consumption, it has reignited private investment as well.
On the global front, Maruti continues to strengthen India’s position as a car export hub. In calendar year 2025, the company accounted for nearly 46% of all passenger vehicle exports from India. Its electric SUV, the e VITARA, has already been shipped to 29 countries, with plans to enter over 100 markets. Meanwhile, the rugged Jimny 5-door has crossed 1 lakh units in cumulative exports, winning fans across continents for its go-anywhere capability.
Back home, Maruti crossed another emotional milestone—30 million cars sold in the Indian market within just 42 years. It also marked its second consecutive year of producing over 2 million vehicles annually, underlining the scale at which it now operates. The WagonR, a long-time household favourite, crossed 3.5 million units in cumulative production, while also introducing a thoughtful swivel-seat option to improve mobility for senior citizens and people with disabilities.
The company’s electric journey is gaining momentum too. The e VITARA earned a 5-star safety rating under Bharat NCAP, joining a growing list of Maruti models with top safety scores. To support EV adoption, Maruti is building out charging infrastructure aggressively, already offering access to 2,000 exclusive charging points and partnering with operators to scale this to over 1 lakh chargers nationwide by 2030.
All this activity reflected strongly in the financials. In Q3 FY26, Maruti posted its highest-ever quarterly net sales of about ₹47,500 crore, up sharply from the year-ago period. Net profit came in at around ₹3,800 crore, slightly affected by a one-time provision related to new labour codes.
For now, Maruti Suzuki has what it calls a “happy problem”: demand is strong, customers are confident, and the market leader is running flat out to keep up. And if the post-GST surge is any indication, India’s car buyers are firmly back in the driver’s seat.