Wait for new GST slabs slows down car sales in August

By Pune Media On Sep 1, 2025

According to sources in the industry, the overall PV sales in the domestic market stood around 3.30 lakh units in August, a decline of more than 7 per cent year-on-year (YoY) as compared with 3.56 lakh units in August last year.
| Photo Credit:
BHAWIKA CHHABRA

Domestic passenger vehicle (PV) wholesales (dispatches to dealers) remained tepid during August as dealers did not pick up vehicles owing to expected reduction in GST this month. Maruti Suzuki India (MSIL) said it has a pending order of around 1.50 lakh vehicles.

“We are expecting that it (cut in GST slabs) will be very good for the country as a whole, and it will overall have a very positive impact on the auto industry. But, for any good thing to happen, there is always something we have to go through that pain. So in this month (in August), you all know that we have calibrated our dispatches…Once the GST announcement happens, I think the entire scenario will totally change,” Partho Banerjee, Senior Executive Officer (Marketing and Sales), MSIL, told reporters.

The company reported reported a decline of 8 per cent YoY in its dispatches in August 1,31,278 units in August, as compared with 1,43,075 units in August 2024.

Booking growth

“Many of the OEMs (original equipment manufacturers) have taken a stance actually that let the wholesales be done based on the dealer request…The bookings are very healthy. In fact, for Onam month in Kerala, our booking growth is to the tune of 16 per cent, that’s very healthy number. I think monsoon is pretty good in the whole country and we always welcome the monsoon because if the monsoon is good, there is bumper harvest and that really builds huge amount of joy for the auto industry,” Banerjee added.

Other than MSIL, other OEMs such as Hyundai Motor India (HMIL), Mahindra & Mahindra (M&M) and Tata Motors also reported a decline in dispatches during August, even though festive season kicked off during the month with Ganesh Chaturthi and Onam in some parts of the country.

HMIL dispatched 44,001 units last month, which was a decline of 11 per cent YoY as against 49,525 units in the year-ago period.

Similarly, M&M sold 39,399 vehicles in the domestic market, a dip of 9 per cent YoY against 43,277 units in August 2024. Tata Motors also reported 7 per cent decline YoY in its total passenger vehicle dispatches in the domestic market to 41,001 units last month from 44,142 units in August 2024.

However, in the two-wheelers dispatches, there were not much impact except Honda Motorcycle & Scooter India (HMSI) and Bajaj Auto that reported 2 per cent and 12 per cent decline YoY in their respective domestic sales in August.

Published on September 1, 2025

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