Dealerships face inventory glut in August as car buyers await GST cuts

VAHAN data shows 3% m-o-m drop in retail auto sales; EV market hopes hold up

Automobile dispatches and retail sales were hit in the second half of August as confusion around goods and services tax (GST) implementation held customers back from placing orders at dealerships. Data from the Vahan portal showed a 3 per cent drop in sales in August compared to July — total automobile retail sales were 1,916,350 units in August versus 1,970,559 units in July.

 

These numbers are as of August 30 and may vary when final registration figures are released.

 

Dispatches from original equipment manufacturers (OEMs) also slowed in the last week of August as retail sales nearly came to a