In August 2025, the auto retail sector recorded modest growth of only 2.84%, despite festivals like Onam and Ganesh Chaturthi during the month. According to the Federation of Automobile Dealers Associations (FADA), many customers delayed purchases until September in anticipation of the GST rate cut. Since the cut came into effect from September 22, a strong sales rebound is expected during Dussehra and Diwali.
The tractor segment saw a sharp surge of 301.4%, while most other segments registered only single-digit growth. Two-wheeler sales rose by 2.18%, passenger vehicle sales by 0.93%, and commercial vehicle sales by 8.55%. In contrast, three-wheeler sales declined by 2.26% and construction equipment sales fell by 26.45%.
Overall auto retail sales in August 2025 increased to 19.60 lakh units, up from 19.10 lakh units a year earlier. Compared to July, sales improved by 1.34%. States like Kerala and Maharashtra recorded strong sales due to festivals, but in other regions, heavy rains and floods weakened rural demand. Dealers expect vehicle sales to rise significantly during the upcoming Dussehra and Diwali festivals.