The automotive industry presented a mixed picture in August 2025. While the passenger vehicle segment experienced a slowdown, two-wheeler companies reported steady growth. Festivals like Onam, Raksha Bandhan, and Ganesh Chaturthi provided some support to retail sales, but there wasn’t a significant increase in dispatches.
Dealers were hesitant to stock up due to anticipated GST cuts. Customers postponed purchases, and dealers were cautious about increasing their inventory, influenced by the potential for reduced prices after a possible change in tax rates. Currently, small cars and two-wheelers are subject to 28% GST, while larger cars face a 43-50% GST.
In contrast, the two-wheeler segment performed well year-on-year. The Onam, Navratri, and Durga Puja seasons further boosted demand. Experts believe that the potential tax cuts would benefit four-wheelers more, potentially increasing demand by 5-10%.
Hero MotoCorp saw a significant contribution from motorcycles, with sales of 5,01,523 units, up 4.87% from August 2024’s 4,78,215 units. The company’s scooter segment saw sales of 52,204 units, a 52.89% increase from the previous year’s 34,145 units.
Meanwhile, TVS has established a strong presence in the EV market. In August 2025, the company sold a total of 25,138 electric vehicles, exceeding the 24,779 units sold in August of the previous year.
The SUV segment continues to dominate the PV market, accounting for approximately 65-66% of total sales. However, the top four vehicle manufacturers experienced a decline in August deliveries compared to the previous year. Domestic PV dispatches are estimated to be around 3.3 lakh units, about 7% less than the 3.5 lakh units from the previous year.
Maruti Suzuki reported approximately 1.5 lakh pending orders and about 50 days of stock in its dealer network. Sales of mini cars decreased by 36%, while compact cars saw a slight increase. The SUV segment experienced a 14% decline.
