Total vehicle retail sales in India grew by a modest 2.84% at 19,64,547 units in August as against 19,10,312 units in the same month last year, as customers postponed purchases expecting a price cut ahead of GST reforms, Federation of Automobile Dealers Associations (FADA) said on Monday (September 8, 2025).

“Passenger Vehicle (PV) sales were marginally up at 3,23,256 units last month as compared to 3,20,291 units in August 2024,” FADA said in a statement.

PV retails in August recorded a modest growth of 0.93% year-over-year (YoY). “The month began on a positive note with healthy enquiries and festive bookings, but momentum slowed in the latter half as the announcement of GST 2.0 reforms led many customers to postpone purchases, anticipating a price reduction,” the dealer’s body said.

“Two-wheeler retail sales in August this year were at 13,73,675 units as against 13,44,380 units in the year-ago month, up 2.18%,” it added.

FADA said in the two-wheeler segment enquiries remained strong, fuelled by the onset of festivals such as Onam and Ganesh Chaturthi, with many customers keen on auspicious-day deliveries. However, excessive rains and localised floods in North India disrupted rural mobility, while erratic supply of popular scooter models constrained conversions.

“The landmark GST 2.0 announcement also led to buyers deferring purchases to September in anticipation of lower rates,” it noted.

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“Despite these factors, overall sentiment is steady, and dealers remain confident that the festive season ahead will unlock robust growth momentum,” FADA said. “The commercial vehicle segment witnessed a growth of 8.55% at 75,592 units as compared to 69,635 units in August last year,” FADA said.

Three-wheeler retail sales were at 1,03,105 units as compared to 1,05,493 units in the year-ago month, down 2.26%.

Commenting on the performance, FADA President C.S. Vigneshwar said: “August traditionally ushers in festive cheer, with Onam and Ganesh Chaturthi heralding the season of joy. Customers continued to show strong enthusiasm with high enquiries and robust bookings, ensuring that vehicles are aligned for auspicious festive deliveries. The only issue was conversion, which saw a slowdown due to the benefits of GST 2.0 kicking in September.”

Lauding the recent GST rate cuts on automobiles, he said…”GST 2.0 marks a historic, people-first reset, moving India towards a citizen-friendly ‘Simple Tax’ with just two slabs, along with a special rate for a select few. It embodies courage, consensus, and clarity in indirect taxation.” He further said, “The resilience of India’s auto retail industry, combined with the once-in-a-generation reform of GST 2.0, positions the sector for a robust festive season.”

“Dealers remain confident that September will herald the beginning of an accelerated growth cycle, powered by both policy tailwinds and festive fervour.”

On the near-term outlook, FADA said for auto retails, September will be a two-phase month: a muted first half due to Shraddh and GST wait-and-watch, followed by a sharp surge as policy clarity, festive sentiment, and OEM schemes that mirror upcoming GST reductions converge.”

“These schemes allow customers to book vehicles now while enjoying GST-aligned benefits, ensuring timely deliveries on their preferred auspicious dates such as Navratri and Durga Puja. Dealers across categories expect this strategy to unlock deferred demand and smoothen festive season supply,” it said.

“With GST 2.0 as a landmark reform, proactive OEM schemes, and the onset of India’s biggest festivals, FADA remains decisively optimistic that September will mark the beginning of a strong growth cycle for auto retail,” the statement said.

Published – September 08, 2025 11:48 am IST

Newly manufactured Maruti Suzuki cars are seen parked inside the company factory in Manesar near Gurugram. File
| Photo Credit: PTI

Retail sales of vehicles across categories in India grew by 11.21% at 32,08,719 units in November, as compared to 28,85,317 units in the same month last year riding on two-wheeler demand, Federation of Automobile Dealers Associations said on Monday (December 9, 2024).

Retail sales of two-wheelers were at 26,15,953 units last month, as compared to 22,58,970 units in November 2023, a growth of 15.8% buoyed by the festive spillover.

On the other hand, passenger vehicle (PV) retail was down 13.72% at 3,21,943 units, as against 3,73,140 units in the year-ago month. The PV segment faced notable headwinds, Federation of Automobile Dealers Associations (FADA) said in a statement.

“While November was initially expected to build on its prior momentum, particularly due to the marriage season, dealer feedback suggests that this segment underperformed overall expectations,” FADA President, C.S. Vigneshwar said in a statement.

He further said, “although rural markets offered some support, primarily in the two-wheeler category, marriage-related sales remained subdued.” The late occurrence of Deepawali at the end of October also caused a spillover of festive registrations into November, affecting the month’s sales trajectory, Mr. Vigneshwar added.

On PV retail, he said, “dealers cited weak market sentiment, limited product variety and insufficient new launches, compounded by the shift of festive demand into October.” Mr. Vigneshwar further said, “although rural interest was present, it failed to significantly improve sentiment. Inventory levels have reduced by about 10 days, but to remain high at around 65-68 days.” He reiterated FADA’s request to Original Equipment Manufacturers (OEMs) to further rationalise inventory so that the industry can enter the new year on a healthier footing, reducing the need for additional discounts.

In the commercial vehicles segment, FADA said retail sales were at 81,967 units last month as compared to 87,272 units in November 2023, down 6.08%.

Mr. Vigneshwar said factors such as restricted product choices, older model issues, limited financier support, and the absence of major festivals in November following a strong October impacted CV uptake.

“External elements such as elections, a slowdown in coal and cement industries, and weak market sentiment also weighed heavily on this category,” he added.

FADA said three-wheeler sales in November were at 1,08,337 units, as against 1,03,939 units in the year-ago month, up 4.23%.

On the overall near-term outlook, FADA said, “while the near-term outlook for December is not overwhelmingly strong across segments, it leans towards stability with pockets of potential growth, underlining a sentiment that overall remains cautiously optimistic.” With prospects of a bumper Kharif harvest likely to temper food inflation, the broader macroeconomic environment appears set to improve, potentially aiding consumer sentiment in the months ahead. However, the immediate December outlook derived from dealer feedback is mixed, it added.

In the two-wheeler segment, FADA said, “dealers suggest that while some buyers remain hesitant’ either awaiting new-year models or influenced by subdued post-festive sentiment’ others could be drawn by potential year-end discounts and stable rural demand.” As for the PV category, heavy discounting and improved product availability are expected to help offset weak consumer sentiment and a general year-end lull.

“While some customers are deferring purchases for new-year models, overall interest could pick up due to aggressive offers and end-of-year promotions.

“This sets a tone of cautious optimism, with a moderate chance of improved sales compared to November,” it added.