Auto retails grow modestly by 2.48%, positive outlook after GST 2.0 rollout

The Federation of Automobile Dealers Associations (FADA) released Vehicle Retail Data for August 2025.

According to FADA, India's auto retails registered a modest growth of 2.48% on year in August 2025 and monthly gain of 0.02%.

The 2W retails in August registered a modest growth of 1.34% M-o-M and 2.18% Y-o-Y. Enquiries remained strong, fuelled by the onset of festivals such as Onam and Ganesh Chaturthi, with many customers keen on auspicious-day deliveries. However, excessive rains and localised floods in North India disrupted rural mobility, while erratic supply of popular scooter models constrained conversions.

CV retails in August grew by 8.55% Y-o-Y but softened marginally by -1.11% M-o-M. Dealer feedback suggests that while product acceptance and order clearances remained healthy.

PV retails in August recorded a modest growth of 0.93% Y-o-Y while softening by -1.63% M-o-M. 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.

Meanwhile tractors registered an exceptional 30.14% Y-o-Y growth. Only 3-wheelers (-2.26%) and construction equipment (-26.45%) moderated slightly in August 2025.

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.

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