Car sales fell for the fourth straight month in August with carmakers calibrating dispatches to dealers ahead of the announcement of the revised GST rates.
As per data released by industry body Society of Indian Automobile Manufacturers (SIAM) 321,840 vehicles were dispatched from factories to dealerships last month, which is a decline of 8.8% over 352,921 units sold in the same period last year.
Rajesh Menon, Director General, SIAM said, “Sales of passenger vehicles in August 2025 de-grew by (-) 8.8%, posting sales of 3.22 lakh units as compared to August of previous year, primarily due to recalibration of dispatches by passenger vehicle manufacturers.”
Sales of three-wheelers in the month under review rose 8.3% to 75,759 units. This is the highest-ever sales of three-wheelers reported for the month of August.
Those of two-wheelers went up by 7.1% to 1,833,921 units in August. While sales of scooters increased by 12.7% to 683,397 units, those of motorcycles grew by 4.3% to 1,106,638 units last month. Sales of mopeds fell by 1.5% to 43,886 units in the same period.
“The landmark decision of Government of India to reduce the GST rates on vehicles will go a long way in enabling broader access to mobility and inject fresh momentum into the Indian Automotive sector in the upcoming festive season”, Menon added.
Partho Banerjee, senior executive officer at the country’s largest carmaker Maruti Suzuki confirmed in an interaction earlier this month, “Many OEMs (Original Equipment Manufacturers) have been consciously calibrating dispatches to dealers as the revised GST rates will be announced later this month. This impacted wholesale numbers in August. But the indications in the market are positive. We have seen bookings in Kerala during Onam go up by 16%. During Ganesh festival too we have seen good enquiries and footfalls.”
Nalinikanth Gollagunta, CEO, Automotive Division, M&M, too said the company is looking forward to the impact of the GST rationalisation, “which would be a demand driver through the festive season.”
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As per data released by industry body Society of Indian Automobile Manufacturers (SIAM) 321,840 vehicles were dispatched from factories to dealerships last month, which is a decline of 8.8% over 352,921 units sold in the same period last year.
Rajesh Menon, Director General, SIAM said, “Sales of passenger vehicles in August 2025 de-grew by (-) 8.8%, posting sales of 3.22 lakh units as compared to August of previous year, primarily due to recalibration of dispatches by passenger vehicle manufacturers.”
Sales of three-wheelers in the month under review rose 8.3% to 75,759 units. This is the highest-ever sales of three-wheelers reported for the month of August.
Those of two-wheelers went up by 7.1% to 1,833,921 units in August. While sales of scooters increased by 12.7% to 683,397 units, those of motorcycles grew by 4.3% to 1,106,638 units last month. Sales of mopeds fell by 1.5% to 43,886 units in the same period.
“The landmark decision of Government of India to reduce the GST rates on vehicles will go a long way in enabling broader access to mobility and inject fresh momentum into the Indian Automotive sector in the upcoming festive season”, Menon added.
Partho Banerjee, senior executive officer at the country’s largest carmaker Maruti Suzuki confirmed in an interaction earlier this month, “Many OEMs (Original Equipment Manufacturers) have been consciously calibrating dispatches to dealers as the revised GST rates will be announced later this month. This impacted wholesale numbers in August. But the indications in the market are positive. We have seen bookings in Kerala during Onam go up by 16%. During Ganesh festival too we have seen good enquiries and footfalls.”
Nalinikanth Gollagunta, CEO, Automotive Division, M&M, too said the company is looking forward to the impact of the GST rationalisation, “which would be a demand driver through the festive season.”
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