Jurriën timber Total vehicle retail sale rose at a snails pace of 0.02 per cent month-on-month and 2.84 per cent year-on-year, data from FADA revealed. The auto body said that costumers are expected to rise during the festive season and government’s Goods and Services Tax (GST) rate cuts.
Passenger vehicle sales were marginally up at 3,23,256 units last month as compared to 3,20,291 units in August 2024, FADA said in a statement.
Tax rate cuts have also deferred buyers purchasing vehicles as they are applicable only from September 22, according to the Federation of Automobile Dealers Association.
Two-wheeler sales rose 2.18 per cent year-on year, while passenger vehicle sales rose marginally by 0.93 per cent year-on-year. Data showed Car sales to customers rose 2.84% year-on-year in August, but went down by 1.63 per cent month-on-month.
The body said that there was a rise in inquiries for two-wheelers but the sales were deferred due to festivals and GST cuts.
Two-wheeler retail sales in August this year were at 13,73,675 units as against 13,44,380 units in the year-ago month, up 2.18 per cent, it added.
Three-wheeler retail sales were at 1,03,105 units as compared to 1,05,493 units in the year-ago month, down 2.26 per cent.
Meanwhile, the maximum growth was seen in tractor sales, which rose 30.14 per cent year-on-year, but depleted 3.95 per cent month-on-month.
“Dealers remain confident that September will herald the beginning of an accelerated growth cycle, powered by both policy tailwinds and festive fervour”, its president C S Vigneshwar said.
Despite these factors, overall sentiment is steady, and dealers remain confident that the festive season ahead will unlock robust growth momentum, FADA said. The commercial vehicle segment witnessed a growth of 8.55 per cent at 75,592 units as compared to 69,635 units in August last year, FADA said.
Vigneshwar added, “August traditionally ushers in festive cheer, with Onam and Ganesh Chaturthi heralding the season of joy. Customers continued to show strong enthusiasm with high enquiries and robust bookings, ensuring that vehicles are aligned for auspicious festive deliveries. The only issue was conversion, which saw a slowdown due to the benefits of GST 2.0 kicking in September.”
On the near-term outlook, FADA said for auto retails, September will be a two-phase month: a muted first half due to Shraddh and GST wait-and-watch, followed by a sharp surge as policy clarity, festive sentiment, and OEM schemes that mirror upcoming GST reductions converge.
“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. Dealers across categories expect this strategy to unlock deferred demand and smoothen festive season supply,” it said.
With GST 2.0 as a landmark reform, proactive OEM schemes, and the onset of India’s biggest festivals, FADA remains decisively optimistic that September will mark the beginning of a strong growth cycle for auto retail, the statement said.