India’s auto industry saw a rollercoaster ride in August 2025, with passenger vehicle sales dipping while two-wheelers and three-wheelers showed solid growth. The Society of Indian Automobile Manufacturers (SIAM) shared these latest figures on Monday, highlighting a mixed bag for the Indian automobile sector.
Passenger vehicle sales dropped by 8.8% to 3,21,840 units compared to last August. Manufacturers pointed to a recalibration of dispatches as the main reason for this decline in passenger vehicle sales. Still, the overall picture isn’t all gloom—other segments picked up the slack.
In a bright spot, three-wheeler sales hit an all-time high for August, climbing 8.3% year-on-year to 75,759 units from 69,962 units in 2024. Passenger carriers and goods carriers fueled this surge in the three-wheeler segment. But not everything was smooth: e-rickshaw sales plunged 49.4% to just 1,344 units, while e-cart sales skyrocketed 362.9% to 810 units.
Two-wheeler sales, a powerhouse in the Indian auto market, jumped 7.1% to 18,33,921 units from 17,11,662 units last year. Scooters led the charge with a 12.7% rise to 6,83,397 units, and motorcycles grew a steady 4.3% to 11,06,638 units. Mopeds saw a small dip of 1.5% at 43,886 units, and quadricycles had zero sales for the month.
SIAM Director General Rajesh Menon explained the trends: “Passenger vehicle sales fell 8.8% to 3.22 lakh units in August 2025, mainly because manufacturers adjusted their dispatches. Three-wheelers achieved their best-ever August sales at 0.76 lakh units, up 8.3%, and two-wheelers rose 7.1% to 18.34 lakh units.”
Menon also highlighted a positive boost from the government’s recent cut in Goods and Services Tax (GST) rates on vehicles. “This move will make mobility more accessible and add fresh energy to the Indian automotive sector, especially during the upcoming festive season,” he added.
Overall, production across passenger vehicles, three-wheelers, two-wheelers, and quadricycles reached 26,93,049 units in August 2025. As the festive period approaches, these auto sales trends could signal exciting times ahead for buyers and the industry alike.
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