Updated on: Sept 08, 2025 09:44 am IST
The government has reduced GST rates on cars and two-wheelers by as much as 10 points, setting the stage for a surge in festive sales in September and October.
India’s auto sales remained muted in August 2025, as buyers awaited new GST rates on cars and two-wheelers before making a purchase decision.
Retail car sales, measured as registrations on the government’s VAHAN website, rose 0.93% year-on-year to 3,23,256 units last month, even as retail two-wheeler sales grew 2.18% to 13,73,675 units, according to data collated by the Federation of Automobile Dealers Associations of India.
“The month began on a positive note with healthy inquiries and festive bookings, but slowed in the second half as the announcement of GST 2.0 reforms delayed decision-making,” FADA President CS Vigneshwar said in a media statement on Monday (8 September 2025). “Heavy rains and floods disrupted walk-ins, while uneven supply of high-demand models and aggressive OEM targets added to the pressure.”
“Despite this temporary pause…dealers expect September to deliver a sharper rebound as GST clarity and auspicious festive days converge to unlock deferred demand.”
