**Why Car Deliveries in India Are at Risk This Diwali**
*By Dwaipayan Roy | Oct 04, 2025, 06:47 PM*
India’s auto industry is facing significant delivery challenges amid a surge in festive demand. As vehicle manufacturers race against the clock to meet Dhanteras and Diwali deadlines, the shortage of trucks, trailers, and rare earth magnets is causing delays in dispatches for both four-wheelers and two-wheelers.
**Spike in Festive Demand Boosts Sales**
Following the GST rate cuts implemented on September 22, car and two-wheeler sales have soared. Factories dispatched an estimated 3.75 to 3.8 lakh vehicles in September, marking a 5-6% growth compared to last year. Retail sales witnessed an even sharper increase, jumping nearly 25% as customers took advantage of tax benefits, festive offers, and the timing of Navratri.
**Logistics Under Strain**
The sudden surge in demand across multiple sectors has put immense pressure on the truck industry. Fleets are operating round-the-clock to fulfill deliveries nationwide. An industry official explained, “Add to this the usual gifting rush around Diwali and you have a problem that is increasingly becoming very challenging to solve.” This underscores the logistical hurdles businesses face during the festive season.
**Industry Steps Up Efforts**
In response, carmakers are working overtime and even leveraging railways to expedite dispatches. Partho Banerjee of Maruti Suzuki revealed that the company has pending deliveries of 2.5 lakh vehicles and is striving to ensure timely dispatches. Similarly, Amit Kamat from Tata Motors Passenger Vehicles acknowledged the demand spike post-GST cuts and stated they are collaborating closely with logistics partners to speed up deliveries despite the challenges.
**Luxury Carmakers and Two-Wheelers Also Impacted**
Luxury carmakers like BMW Group India are not immune to the delivery delays, facing challenges amid high demand during Dhanteras and Diwali. Two-wheeler manufacturers are grappling not only with logistics but also shortages of rare earth magnets — a critical component for electric vehicles. A top official from a leading two-wheeler company remarked, “The cut in retail prices has meant that there has been a sudden rise in demand for scooters and motorcycles.”
As the festive season progresses, the auto industry continues to navigate these supply chain and logistical challenges to meet consumer expectations.
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