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“Passenger Vehicle (PV) gross sales have been marginally up at 3,23,256 items final month as in comparison with 3,20,291 items in August 2024,” FADA mentioned in a press release.
PV retails in August recorded a modest progress of 0.93% year-over-year (YoY). “The month started on a constructive observe with wholesome enquiries and festive bookings, however momentum slowed within the latter half because the announcement of GST 2.0 reforms led many shoppers to postpone purchases, anticipating a value discount,” the vendor’s physique mentioned.
“Two-wheeler retail gross sales in August this yr have been at 13,73,675 items as towards 13,44,380 items within the year-ago month, up 2.18%,” it added.
FADA mentioned within the two-wheeler phase enquiries remained sturdy, fuelled by the onset of festivals comparable to Onam and Ganesh Chaturthi, with many shoppers eager on auspicious-day deliveries. However, extreme rains and localised floods in North India disrupted rural mobility, whereas erratic provide of common scooter fashions constrained conversions.
“The landmark GST 2.0 announcement also led to buyers deferring purchases to September in anticipation of lower rates,” it famous.
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“Despite these elements, total sentiment is regular, and sellers stay assured that the festive season forward will unlock strong progress momentum,” FADA mentioned. “The business automobile phase witnessed a progress of 8.55% at 75,592 items as in comparison with 69,635 items in August final yr,” FADA mentioned.
Three-wheeler retail gross sales have been at 1,03,105 items as in comparison with 1,05,493 items within the year-ago month, down 2.26%.
Commenting on the efficiency, FADA President C.S. Vigneshwar mentioned: “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.”
Lauding the latest GST price cuts on vehicles, he mentioned…”GST 2.0 marks a historic, people-first reset, shifting India in direction of a citizen-friendly ‘Simple Tax’ with simply two slabs, together with a particular price for a choose few. It embodies braveness, consensus, and readability in oblique taxation.” He additional mentioned, “The resilience of India’s auto retail business, mixed with the once-in-a-generation reform of GST 2.0, positions the sector for a strong festive season.”
“Dealers stay assured that September will herald the start of an accelerated progress cycle, powered by each coverage tailwinds and festive fervour.”
On the near-term outlook, FADA mentioned for auto retails, September will likely be a two-phase month: a muted first half attributable to Shraddh and GST wait-and-watch, adopted by a pointy surge as coverage readability, 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 mentioned.
“With GST 2.0 as a landmark reform, proactive OEM schemes, and the onset of India’s largest festivals, FADA stays decisively optimistic that September will mark the start of a robust progress cycle for auto retail,” the assertion mentioned.
