Passenger vehicle volumes dip by 8.8% in August on dispatch tweaks ahead of GST: SIAM

The recalibration of dispatches in passenger vehicles by OEMs—ostensibly ahead of the reduction in GST rates—saw volumes dip 8.8% in August year-over-year, according to data released by the Society of Indian Automobile Manufacturers Association (SIAM) on Monday.

3,21,840 units of passenger vehicles were sold in August, the data showed. “Sales of passenger Vehicles in August 2025 de-grew by 8.8%, posting sales of 3.22 lakh units as compared to August of the previous year, primarily due to recalibration of dispatches by passenger vehicle manufacturers,” Rajesh Menon, director general, SIAM, said in a statement. It should be noted that the data does not include sales figures from Tata Motors.

The sale of utility vehicles—which will see a GST rate cut from as high as 50%, including cess, to a flat rate of 40%—witnessed a de-growth of 10.5% year-over-year to 1,79,588 units in August. The segment has been seen as a volume driver, as sales of smaller cars have been lagging since the implementation of the BS-VI emission norms, which have driven up costs. The segment—which will see a GST rate cut from 28% to 18%—saw a decline in sales by 6.9% to 90,466 units. The GST rate revision is touted to give a fillip in purchases from first-time buyers and also drive demand in hinterlands and smaller towns in India.

According to Menon, three-wheelers posted their highest-ever sales in August 2025 of 75,759 units, with a growth of 8.3% as compared to August 2024. The two-wheeler segment, on the other hand, grew by 7.1% in August 2025, as compared to August 2024, with sales of 18.34 lakh units. “The landmark decision of the Government of India to reduce the GST rates on vehicles will go a long way in enabling broader access to mobility and inject fresh momentum into the Indian automotive sector in the upcoming festive season.”

For two-wheelers with an engine size of less than 350cc, the GST will be slashed from 28% to 18%, which will provide affordable mobility to youth, and critically to rural households and gig economy workers, who primarily use such two-wheelers.