Auto sales inch up in August; GST 2.0, festive demand set to boost September momentum: FADA
Two-wheeler sales stood at 13,73,675 units, up 2.18% from 13,44,380 units in August 2024. Passenger vehicle sales rose 0.93% to 3,23,256 units during the month.
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Two-wheeler and passenger vehicle sales registered only a marginal year-on-year rise in August 2025, according to data released by the Federation of Automobile Dealers Associations (FADA). Two-wheeler sales stood at 13,73,675 units, up 2.18% from 13,44,380 units in August 2024. Passenger vehicle sales rose 0.93% to 3,23,256 units during the month.
FADA attributed the muted growth to a mix of festive enquiries, rains, and consumer wait-and-watch behaviour ahead of GST 2.0. “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 slowdown due to benefits of GST 2.0 kicking in September,” said FADA President CS Vigneshwar.
Commercial vehicle sales, however, outperformed with an 8.55% YoY growth in August, supported by new e-commerce contracts and replacement demand. “With rains subsiding and festive demand ahead, dealers remain confident of stronger traction in September,” Vigneshwar added.
The Centre last week rolled out major GST reforms, slashing tax from 28% to 18% on two-wheelers up to 350cc and on small cars. According to Vigneshwar, “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.”
Looking ahead, FADA expects September to be a two-phase month—muted demand in the first half due to Shraddh and GST-related wait-and-watch, followed by a sharp surge in the latter half as policy clarity, festive sentiment, and OEM schemes take effect. “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 association said.
For the April–August 2025, two-wheeler sales reported a 2.41% YoY rise to 75,42,020 units. Passenger vehicle sales stood at 16,40,760 units, while commercial vehicle sales reached 3,87,890 units.
