The automotive sector experienced a mixed performance in August 2025. While the passenger vehicle segment showed a sluggish trend, two-wheeler companies achieved steady growth. Festivals like Onam, Raksha Bandhan, and Ganesh Chaturthi provided a boost to retail sales, but dispatch volumes did not significantly increase.
Dealers were reluctant to increase their stock, influenced by possible GST cuts. Customers delayed purchases, and dealers minimized stocking, due to possible price reductions after tax changes. Small cars and two-wheelers currently face a 28% GST, while larger cars are subject to 43-50% GST.
Conversely, the two-wheeler segment performed favorably on a year-over-year basis. The approaching Navratri and Durga Puja seasons are anticipated to further bolster demand. Experts predict that tax cuts, if implemented, would benefit four-wheelers more, potentially leading to a 5-10% increase in demand.
Hero MotoCorp saw strong sales in motorcycles, with 5,01,523 units sold, representing a 4.87% increase compared to the 4,78,215 units in August 2024. The scooter segment saw 52,204 units sold, up 52.89% from the previous year’s 34,145 units.
TVS has become a prominent player in the EV market. In August 2025, the company sold 25,138 electric vehicles, exceeding the 24,779 units sold in August of the previous year.
The SUV segment continues to be dominant in the PV market, accounting for about 65-66% of the total sales. However, the leading four vehicle manufacturers saw decreased deliveries in August compared to the previous year. Domestic PV dispatches are estimated at about 3.3 lakh units, approximately 7% less than the 3.5 lakh units from the previous year.
Maruti Suzuki reported approximately 1.5 lakh pending orders and a stock of around 50 days within its dealer network. Sales of mini cars declined by 36%, whereas compact cars witnessed a slight increase. The SUV segment recorded a 14% decrease.