India’s consumer market has started the 2026 festive season on a strong note, with demand reaching a five-year high across automobiles, home appliances, apparel, footwear and online shopping.

The initial festive period covering Onam, Rakshabandhan and Ganesh Chaturthi has delivered strong sales despite significant price increases across several product categories. Retailers and manufacturers are now expecting the momentum to continue through Navratri and Diwali.

Cars Lead the Festive Surge

The automobile sector has recorded particularly strong demand. Car dealers reported around 20% year-on-year growth in retail sales during the first phase of the festive season.

Maruti Suzuki’s retail sales during Onam jumped 61%, while Hyundai Motor India nearly doubled its sales. Maruti is also carrying pending orders of around 1.8 lakh vehicles, with channel inventory at roughly 16 days.

The strong demand has prompted Hyundai to accelerate plans for a third shift at its Talegaon plant in Maharashtra.

ACs, TVs and Appliances See Strong Growth

Consumer durables are also witnessing a significant pickup. Volume sales of refrigerators, air-conditioners and washing machines increased 12–15% year-on-year during the first phase of the festive season.

Value sales grew even faster, by around 18–23%, partly because manufacturers have raised prices.

Large-screen televisions, four-door refrigerators, large washing machines and air-conditioners are among the products seeing particularly strong demand.

Consumers Are Spending Despite Higher Prices

The revival is notable because prices have increased considerably across several categories. Home appliances and televisions have become around 12–15% more expensive this year, while laptops and smartphones have seen average price increases of 35–40%. Car prices have risen approximately 3.5–5%.

Consumers are increasingly using financing options to manage these higher costs, while premium products continue to see healthy demand.

Quick Commerce Adds Another Growth Engine

The festive boom is also extending to online platforms. Flipkart’s quick-commerce business recorded 2.5 times the sales it achieved during Ganesh Chaturthi last year, including strong growth in smaller markets.

Department store chain Lifestyle has also reported double-digit growth in sales and average billing value since Onam.

The growth of quick commerce beyond groceries into electronics, fashion and other categories is adding another dimension to India’s festive shopping season.

Tier-II and Tier-III Markets Remain Important

Retailers are reporting stronger demand across smaller cities and towns, with Maharashtra and Karnataka seeing particularly healthy sales around Ganesh Chaturthi.

Industry executives say the improvement is visible across Tier-I, Tier-II and Tier-III markets, although the mass segment remains more sensitive to inflation while premium categories continue to perform strongly.

Summary

India’s festive demand has reached a five-year high, with automobiles, appliances, apparel and online retail recording strong growth during Onam, Rakshabandhan and Ganesh Chaturthi. Car retail sales rose around 20%, appliance volumes increased 12–15%, and quick-commerce sales surged, raising expectations for a strong Navratri-Diwali shopping season.