Passenger vehicle dispatches from manufacturers to dealerships fell 9% in August to 321,840 units, compared with 352,921 units a year earlier. The decline was largely the result of companies adjusting supply levels to align with subdued retail demand, according to the Society of Indian Automobile Manufacturers (Siam).
Siam director general Rajesh Menon said that customers delayed purchases last month in anticipation of a reduction in GST rates, which would likely bring down vehicle prices. This cautious approach from buyers affected passenger car sales, prompting automakers to moderate their wholesale numbers.
In contrast, twowheelers registered a healthier trend. Dispatches in this category rose 7% yearonyear to 18,33,921 units, up from 17,11,662 units in August 2024. Within the segment, scooters witnessed a sharper growth of 13% to 6,83,397 units, while motorcycles reported a more modest 4% rise at 11,06,638 units.
Threewheelers also recorded a strong performance, with 75,759 units dispatched in August, marking an 8% increase over 69,962 units in the same month last year. This was the highest figure ever posted for the month of August in the segment.
Looking ahead, Menon said the government’s recent move to reduce GST on vehicles could stimulate demand during the festive period. From September 22, cars powered by petrol or diesel with engine capacities up to 1,200 cc and 1,500 cc will face 18% GST, larger vehicles will continue at 40%, while electric vehicles remain at 5%.
