The automotive industry saw varied results in August 2025. While the passenger vehicle (PV) segment faced a downturn, two-wheeler manufacturers demonstrated consistent growth. The presence of festivals such as Onam, Raksha Bandhan, and Ganesh Chaturthi supported retail sales to some extent, though there wasn’t a substantial increase in dispatch numbers.
Dealers were hesitant to increase their inventories before the festivals, impacted by expectations of potential GST cuts. Customers delayed purchases, and dealers reduced their stocking, influenced by the potential for lower prices after any tax changes. Small cars and two-wheelers currently have a 28% GST, whereas larger cars are subjected to 43-50% GST.
In contrast, the two-wheeler segment showed strong year-on-year performance. The upcoming Navratri and Durga Puja seasons are expected to further strengthen demand. Experts suggest that potential tax cuts would likely benefit four-wheelers more, potentially boosting demand by 5-10%.
Hero MotoCorp’s sales were significantly driven by motorcycles, with 5,01,523 units sold, marking a 4.87% increase compared to the 4,78,215 units sold in August 2024. Scooters contributed with sales of 52,204 units, showing a 52.89% increase from 34,145 units the previous year.
TVS has achieved a strong foothold in the EV market. In August 2025, the company recorded sales of 25,138 electric vehicles, surpassing the 24,779 units sold in August of the previous year.
The SUV segment continues its dominance in the PV market, representing roughly 65-66% of the total sales. However, the leading four vehicle manufacturers experienced reduced deliveries in August compared to the previous year. Domestic PV dispatches are estimated at approximately 3.3 lakh units, about a 7% decrease from the 3.5 lakh units of the previous year.
Maruti Suzuki indicated approximately 1.5 lakh pending orders and about 50 days of stock within its dealer network. Sales of mini cars decreased by 36%, while compact cars saw a slight increase. The SUV segment showed a 14% decrease.