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Informist, Monday, Sept. 8, 2025

 

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--FADA: Aug total vehicle retail sales 1.96 mln units
--FADA: Aug total vehicle retail sales 1.96 mln units, up 2.8% on year
--FADA: Aug passenger vehicle retail sales 323,256 units, up 0.9% on yr
--FADA: Aug 2-wheeler retail sales 1.37 mln units, up 2.2% on year
--FADA: Aug CV retail sales 75,592 units, up 8.6% on year
--FADA: Aug 3-wheeler retail sales 103,105 units, down 2.3% on year
--FADA: Aug tractors retail sales 85,215 units, up 30.1% on year
--FADA: Aug passenger vehicle inventory levels elevated around 56 days
--FADA: GST cut wait and watch, heavy rains kept PV sales growth muted Aug
--FADA: Uneven supply of high-demand PV models added to sales pressure Aug
--FADA: Aggressive targets by cos for PV models added to sales pressure Aug
--FADA: Hope to see sharp surge in auto retail sales Sept after Shraddh ends
--FADA: Apr-Aug vehicle retail sales 10.50 mln units, up 2.9% on year
--FADA: Apr-Aug passenger vehicle retail sales 1.64 mln units, up 2.6% on yr
--FADA: Apr-Aug 2-wheeler retail sales 7.54 mln units, up 2.4% on year
--FADA: Apr-Aug CV retail sales 387,890 units, up 2.4% on year
--FADA: Apr-Aug tractor retail sales 384,253 units, up 12% on year
 

 

NEW DELHI – Retail sales of automobiles in India rose only 2.8% on year in August as customers postponed their purchases on news of a cut in goods and service tax, which may reduce the cost of vehices, the Federation of Automobile Dealers Association said in a press release Monday. FADA said that even though customers showed interest in buying cars ahead of the festivals of Onam and Ganesh Chaturthi, they delayed their purchases until Sept. 22 to avail the new tax rate benefits.

 

Dealerships sold 1.96 million automobile units in August, the same as in July, but higher than the 1.91 million units sold in the same month last year. Barring construction equipment and three-wheelers, all auto segments registered year-on-year growth in retail sales.

 

Two-wheeler sales grew just over 2% to 1.37 million units. While enquiries remained strong, excessive rains and localised floods in northern India disrupted rural mobility, FADA said. In addition, the erratic supply of popular scooter models constrained conversions. "...overall sentiment is steady, and dealers remain confident that the festive season ahead will unlock robust growth momentum," FADA President C.S. Vigneshwar said in a release.

 

Retail sales of passenger vehicles barely grew a percent on year and dropped 1.6% on month to 323,256 units in August. "The month began on a positive note with healthy enquiries and festive bookings, but momentum slowed in the latter half as the announcement of GST 2.0 reforms led many customers to postpone purchases, anticipating a price reduction," FADA said. Rains and floods played spoilsport in retail sales in this segment as well, while uneven supply of high-demand models and aggressive sales targets set by original equipment manufacturers added to the sales pressure, the dealers' body added.  

 

Sales of commercial vehicles grew 8.6% on year but fell a percent on month to 75,592 units in August. "Dealer feedback suggests that while product acceptance and order clearances remained healthy — supported by new contracts from ecommerce and replacement demand — market sentiment in the last week was impacted by speculation around GST reductions, leading to deferment of purchases," FADA said.

 

Tractors continued to go from strength to strength last month, buoyed by a strong monsoon, rural liquidity, and a good crop outlook. Tractor sales grew 30% on year but fell 4% on month to 85,215 units. Sales of three-wheelers fell 2.3% on year to 103,105 units and sales of construction equipment fell over 26% to 3,704 units.

 

OUTLOOK

FADA has expressed optimism about growth in retail sales of automobiles driven by the GST rate cut and the festival season. In September, the body anticipates muted sales in the first half due to the Shraddh period (Sept. 7-Sept. 21) and postponement of auto purchases till Sept. 22 when the new GST rates will be applicable. This will be followed by "a sharp surge as policy clarity, festive sentiment, and OEM schemes that mirror upcoming GST reductions converge," FADA said.

 

Automobile companies like Mahindra & Mahindra Ltd. currently offer schemes on their cars that are applicable before the new GST rates are levied. "These schemes allow customers to book vehicles now while enjoying GST-aligned benefits, ensuring timely deliveries on their preferred auspicious dates such as Navratri and Durga Puja," FADA said. Dealers expect this strategy to unlock deferred demand and smoothen festive season supply.

 

As per a survey conducted by FADA, nearly 63% of dealers expect growth in September, and nearly 78% expect growth in the next three months. 

 

Apr-Aug

In Apr-Aug, dealerships sold 10.50 million automobile units, up nearly 3% on year. Of these, two-wheeler sales were 7.54 million units, up 2.4%. Passenger vehicle sales grew 2.6% from the corresponding period a year ago to 1.64 million units. During this period, commercial vehicle retail sales grew 2.4% to 387,890 units.

 

Retail sales of three-wheelers so far this financial year rose over 6% to 519,358 units. Tractor sales registered the highest growth among all segments at 384,253 units during the period, up 12% on year. Construction equipment was the only segment to register contraction in sales, down over 3% at 28,325 units.  End

 

Reported by Anand JC

Edited by Avishek Dutta

 

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