The country’s largest carmaker Maruti Suzuki India reported an 8 per cent year-on-year dip in dispatches of passenger vehicles in the domestic market last month
New Delhi: Leading automakers Maruti Suzuki, Hyundai, Mahindra, and Tata Motors saw a dip in dispatches to dealers in August amid dip in demand with many prospective buyers postponing their buys anticipating a reduction in vehicle prices on account of the new GST framework.
The country’s largest carmaker Maruti Suzuki India reported an 8 per cent year-on-year dip in dispatches of passenger vehicles in the domestic market last month.
The company’s dispatches stood at 1,31,278 units last month as compared with 1,43,075 units in the year-ago month.
The sale of mini segment cars, comprising Alto and S-Presso, declined to 6,853 units against 10,648 units in August 2024.
Dispatches of compact cars, including Baleno, Dzire, Ignis and Swift, however, increased to 59,597 units from 58,051 units a year ago.
Utility vehicles, consisting of Grand Vitara, Brezza, Ertiga, and XL6, clocked sales of 54,043 units last month compared to 62,684 units in the year-ago period, registering a decline of 14 per cent.
In a virtual press conference, Maruti Suzuki Senior Executive Officer (Marketing and Sales) Partho Banerjee said the GST reform is going to have a positive impact on the automobile industry.
“We are expecting that it will be very good for the country as a whole, and it will overall have a very positive impact on the auto industry. But for any good thing to happen, there is always something we have to go through that pain. So in this month, you all know that we have calibrated our dispatches,” he noted.
He noted that the industry wholesale has declined 7 per cent in August as compared with the year-ago period.
“Once the GST announcement happens, I think the entire scenario will totally change,” Banerjee said.
He noted that Maruti Suzuki alone has bookings to the tune of 1.5 lakh units.
The company has vehicle stock level of 48-50 days going into the peak festival season, he added.
Tata Motors reported a sharp rise in electric vehicle (EV) sales in August 2025, with a 44 per cent year-on-year increase to 8,540 units compared to 5,935 units in the same month last year, as per a company release. The growth highlights the company’s expanding presence in the electric mobility market. At the same time, the company also noted that it “Recorded highest-ever monthly sales with rising consumer confidence in EVs and accelerating the shift towards green, zero-emission mobility.”
Notably, the overall performance of the passenger vehicle (PV) business presented a mixed picture. Domestic passenger vehicle sales, which include EVs, declined by 7 per cent, falling to 41,001 units from 44,142 units in August 2024.
However, international business (PV IB) recorded a significant upswing, surging 573 per cent to 2,314 units, compared to 344 units a year earlier. Total passenger vehicle sales, including exports and EVs, reached 43,315 units, down slightly by 3 per cent compared to 44,486 units last year.
In the commercial vehicle (CV) segment, the company showcased steady growth. Total CV sales stood at 29,863 units in August 2025, up 10 per cent from 27,207 units in August 2024. Domestic CV sales increased by six per cent to 27,481 units, while international CV business expanded significantly by 77 per cent to 2,382 units compared to 1,343 units last year
Segment-wise, heavy commercial vehicle (HCV) trucks rose five per cent with 7,451 units, intermediate and light commercial vehicles (ILMCV) climbed 15 per cent to 5,711 units, passenger carriers increased five per cent to 3,577 units, and small commercial vehicles (SCV) cargo and pickup gained four per cent to 10,742 units.
Hyundai Motor India said its domestic dispatches to dealers declined 11 per cent year-on-year to 44,001 units last month as against 49,525 units in the year-ago period.
“Our goal is to establish India as a strategic manufacturing base for emerging economies and to become Hyundai’s largest export hub outside South Korea,” the company’s COO Tarun Garg said.
He did not elaborate on the reasons for the sales dip in the domestic market.
Mahindra & Mahindra said its utility vehicle sales stood at 39,399 units in the domestic market last month, a dip of 9 per cent over 43,277 units in the year-ago period.
“With the final GST announcement approaching, we consciously decided to bring down the wholesale billing to minimise the stock being carried by our dealers,” M&M CEO (Automotive Division) Nalinikanth Gollagunta said.
The company looks forward to GST rationalisation, which would be a demand driver through the festive season, he added.
Tata Motors also reported a 7 per cent dip in passenger vehicles dispatches to dealers last month.
The Mumbai-based automaker sold 41,001 units last month as against 44,142 units in August 2024.
The drop in sales of the top carmakers come at a time when buyers have decided to delay purchases, expecting a cut in GST on vehicles.
The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.
According to the reform proposed by the Centre to the GoMs, goods and services tax (GST) should be a two-rate structure of 5 and 18 per cent, classifying goods and services as ‘merit’ and ‘standard’.
A special rate of 40 per cent will be levied on select few items like ultra-luxury cars and sin goods.
Prime Minister Narendra Modi had announced GST reforms in his Independence Day speech on August 15.
Currently, GST is a 4-tier structure of 5, 12, 18 and 28 per cent.
Presently, automobiles are taxed at 28 per cent, which is the highest GST slab.
A compensation cess, ranging from 1 to 22 per cent, is levied on top of this rate, depending on the type of vehicle.
The total tax incidence on cars, depending on engine, capacity and length, ranges from 29 per cent for small petrol cars to 50 per cent for SUVs.
Electric vehicles are taxed at a 5 per cent rate. Currently, GST is a 4-tier structure of 5, 12, 18 and 28 per cent.
Presently, automobiles are taxed at 28 per cent, which is the highest GST slab.
A compensation cess, ranging from 1 to 22 per cent, is levied on top of this rate, depending on the type of vehicle.
The total tax incidence on cars, depending on engine, capacity and length, ranges from 29 per cent for small petrol cars to 50 per cent for SUVs.
Electric vehicles are taxed at a 5 per cent rate. Other carmaker Toyota Kirloskar Motor (TKM) said its domestic wholesales rose 2 per cent year-on-year to 29,302 units last month.
In August 2024, it sold 28, 589 units in the domestic market.
TKM Vice President, Sales-Service-Used Car Business Varinder Wadhwa said September will be an important phase for the industry overall.
“We will closely observe market trends as they unfold,” he added.
In the two-wheeler space, Bajaj Auto reported a 12 per cent dip in domestic sales at 1,84,109 units in August from 2,08,621 units in the year-ago period.
TVS Motor Company said its domestic two-wheeler sales registered a rise of 28 per cent year-on-year at 3,68,862 units in August this year.
Motorcycle maker Royal Enfield said its domestic sales last month stood at 1,02,876 units against 65,623 units in August 2024, up 57 per cent.
“Our performance in August reflects a positive momentum as we step into the festive season, which traditionally drives strong demand in the domestic market,” Royal Enfield CEO and Eicher Motors Managing Director B Govindarajan said.