Indian Auto Sales Show Mixed Signals in August Amid GST Buzz
In a tale of ups and downs, India’s car market faced a slowdown last month, but two-wheelers and three-wheelers kept the momentum going. Buyers held back on passenger vehicles, waiting for the upcoming Goods and Services Tax (GST) changes that promise lower prices starting September 22. This comes from fresh data shared by the Society of Indian Automobile Manufacturers (SIAM) on Monday.
Passenger vehicle sales took a hit, dropping 8.8% from last year to 3,21,840 units. That’s down from 3,52,921 units in August 2024. SIAM Director General Rajesh Menon explained that customers are smartly delaying buys, hoping for GST rate cuts that will slash vehicle prices soon.
On the brighter side, the two-wheeler segment revved up nicely. Sales jumped 7% to 18,33,921 units compared to 17,11,662 units a year earlier. Scooters led the charge with a solid 13% growth, hitting 6,83,397 units, while motorcycles rose 4% to 11,06,638 units. These numbers show everyday commuters are still hitting the road without waiting around.
Three-wheelers stole the show, clocking their best-ever August figures at 75,759 units—a healthy 8.3% rise from 69,962 units last year. Passenger carriers and goods transporters fueled this surge, making it a win for urban transport needs. But not everything was smooth: e-rickshaw sales crashed 49.4% to just 1,344 units. On the flip side, e-cart volumes exploded by 362.9% to 810 units, hinting at shifting trends in electric mobility.
Looking forward, experts predict a sales boom once GST 2.0 kicks in. Smaller petrol and diesel cars—those with engines up to 1,200 cc and 1,500 cc—will face 18% GST. Bigger rides? They’ll stick to the top 40% tax bracket. Big names like Tata Motors, Mahindra & Mahindra, and Hyundai have promised to pass every bit of the savings straight to you, the buyer.
Even with the passenger vehicle dip, overall production for cars, two-wheelers, three-wheelers, and quadricycles held strong in August. With the festive season on the horizon and GST tweaks in play, the Indian automobile industry gears up for what could be a thrilling ride ahead.
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