Passenger Vehicle Dispatches Fall 9% in August, Two-Wheelers Gain Momentum

New Delhi, September 15, 2025 – Passenger vehicle shipments from manufacturers to dealerships fell 9% year-over-year in August, an indication of muted market sentiment and supply adjustments. Wholesale sales of passenger vehicles fell to 3,21,840 units, down from 3,52,921 units in August 2024, as per SIAM data.

Passenger Vehicle Slowdown

SIAM Director General Rajesh Menon pointed out that producers intentionally softened dispatches in accordance with slow consumer demand. Customers postponed purchases in August in anticipation of price drops following the GST rate slash on vehicles.

Two-Wheelers Drive Growth

On the other hand, the two-wheeler segment posted positive growth. Dispatches grew 7% year-on-year to 18,33,921 units, compared with 17,11,662 units in the same period last year.

Scooters spearheaded the growth, with sales jumping 13% to 6,83,397 units. Motorcycles too saw a stable 4% growth, which stood at 11,06,638 units.

Record August for Three-Wheelers

Three-wheeler dispatches also reached a record high for August by growing 8% to 75,759 units from 69,962 units in the same month of the previous year.

GST Rate Cut to Boost Festive Demand

Industry hopes are still high for the festive season. According to Menon, the government’s cut in GST on cars will make them more affordable and spur mobility adoption. Petrol and diesel cars with engines up to 1,200 cc (petrol) and 1,500 cc (diesel) will come under 18% GST, while bigger cars will incur 40% GST, with effect from September 22. Electric vehicles will still enjoy a concessional 5% GST. The revised tax regime is expected to stimulate demand and provide much-needed momentum for the auto sector in the months ahead.

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