August 2025 presented a diverse scenario for the automotive industry. While the passenger vehicle sector saw a decline, two-wheeler companies demonstrated robust growth. The presence of festivals like Onam, Raksha Bandhan, and Ganesh Chaturthi contributed to retail sales, although significant growth in dispatches was not observed.
Uncertainty surrounding potential GST cuts led to hesitancy among dealers in stocking up. Customers postponed their purchases, causing dealers to be cautious, which may have resulted in decreased prices due to potential tax rate changes. Currently, small cars and two-wheelers are taxed at 28% GST, and larger cars are taxed at 43-50%.
In contrast, the two-wheeler segment experienced positive year-over-year performance. The upcoming Navratri and Durga Puja festivals are expected to further bolster demand. Experts anticipate that any tax cuts would predominantly benefit four-wheelers, potentially driving a 5-10% increase in demand.
Hero MotoCorp’s sales were boosted by motorcycles, selling 5,01,523 units, reflecting a 4.87% increase from August 2024’s 4,78,215 units. Scooters contributed with 52,204 units sold, representing a 52.89% increase from the previous year’s 34,145 units.
TVS has solidified its position in the EV market. In August 2025, the company sold 25,138 electric vehicles, surpassing the 24,779 units sold in August of the preceding year.
The SUV segment maintains its leading position in the PV market, accounting for approximately 65-66% of overall sales. However, the top four vehicle manufacturers reported lower deliveries in August compared to the previous year. Domestic PV dispatches are estimated to be roughly 3.3 lakh units, down by about 7% from the previous year’s 3.5 lakh units.
Maruti Suzuki has about 1.5 lakh pending orders and approximately 50 days of stock in its dealer network. Sales of mini cars declined by 36%, while compact cars experienced a slight increase. The SUV segment experienced a 14% decline.