India's auto sales show mixed trends: Passenger vehicles dip, two-wheelers surge in August

New Delhi: India’s automobile industry showed mixed trends in August, with passenger vehicle sales slipping as buyers delayed purchases ahead of the upcoming Goods and Services Tax (GST) reform, while two-wheeler and three-wheeler sales posted strong growth, industry data showed Monday.

According to the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle wholesales fell 8.8% year-on-year to 3,21,840 units, compared with 3,52,921 units in August 2024. SIAM Director General Rajesh Menon said customers postponed purchases in anticipation of the GST rate cut, which is expected to lower vehicle prices.

Two-wheeler sales rose 7% to 18,33,921 units from 17,11,662 a year earlier. Within the segment, scooter sales jumped 13% to 6,83,397 units, while motorcycles rose 4% to 11,06,638 units.

The three-wheeler category registered its best-ever August sales at 75,759 units, up 8.3% from 69,962 last year, driven by demand for passenger and goods carriers. However, e-rickshaw sales dropped sharply by 49.4% to 1,344 units, while e-cart sales surged 362.9% to 810 units.

Industry stakeholders expect momentum to pick up once GST 2.0 is implemented. Under the new structure, petrol and diesel cars with engine capacities up to 1,200 cc and 1,500 cc will attract 18% GST, while larger vehicles will be taxed at 40%.

Major automakers, including Tata Motors, Mahindra & Mahindra and Hyundai, have pledged to pass on the full benefit of the revised rates to customers.

Overall production of passenger vehicles, two-wheelers, three-wheelers and quadricycles in August remained steady, supported by expectations of festive season demand and GST rationalisation.

IANS