As the festival period in nearing in, the cause of worry is that most of the Indian auto majors are moving ahead with low stocks on their books. Clearly, inventories are set to fall short during the upcoming festival season, a time when sales traditionally surge.

It is to be mentioned here that the already long waiting periods on popular models in the domestic market will only get worse when the high demand will come to door of several auto majors in the country.

For instance, the market leader in the Indian market, Maruti Suzuki has been producing one lakh cars a month, or 1.2 million a year, on installed production capacity of a million units, but the company still hasn't been able to meet the high demand of the Indian consumer.

In fact, it carries close to 15-20% as backlog on its books out of the total cars that it is able to sell in the Indian market.

M&M's chief executive (automotive division) Rajesh Jejurikar said that the company is facing shortage as far as a handful of major components is concerned but it is trying its best to meet the demand of the consumers.