September 9, 2025

The vehicle sales market is moving very slowly, but signs of a festive boom and new GST cuts are lighting up hopes. The Federation of Automobile Dealers Association (FADA) shared fresh stats showing only a tiny 0.02% rise in total vehicle retail sales month-on-month in August 2024. Year-on-year, sales grew 2.84%. Passenger vehicles barely climbed to 3,23,256 units, just a small step up from 3,20,291 units in August 2024. FADA explained that buyers are holding back because the new GST rate cuts only started from September 22, 2024. This made customers wait before buying vehicles. Two-wheelers saw a 2.18% year-on-year increase with 13,73,675 units sold in August compared to 13,44,380 units last August. Passenger vehicle sales also edged up by 0.93% year-on-year. However, three-wheeler sales dipped 2.26% year-on-year to 1,03,105 units. The brightest spot was tractor sales, jumping a huge 30.14% year-on-year, though they fell 3.95% month-on-month. Commercial vehicles grew 8.55% year-on-year with 75,592 units sold in August versus 69,635 last year. FADA president C S Vigneshwar shared, "Dealers remain confident that September will herald the beginning of an accelerated growth cycle, powered by both policy tailwinds and festive fervour." He described August as a month bubbling with festive joy from Onam and Ganesh Chaturthi celebrations. Customers showed strong interest, with high enquiries and solid bookings. But he added, "The only issue was conversion, which saw a slowdown due to the benefits of GST 2.0 kicking in September." Looking ahead, FADA predicts September will have two parts: a slow first half because of the Shraddh period and buyers waiting for the GST changes, followed by a sharp jump in sales later. Buyers can now book cars and bikes early with schemes that match the new GST rates, ensuring their vehicles arrive right on time for big festivals like Navratri and Durga Puja. The auto industry is buzzing with hope that these GST reforms and festive excitement will trigger a powerful sales rise. FADA feels the September shift will mark the start of a strong growth cycle in vehicle retailing. So, while August's sales crawled like a slow snail, the coming months may race ahead with festivity and fresh GST discounts spinning their magic!

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Tags: Vehicle sales, Fada, Gst rate cuts, Festive season, Auto retail, Two-wheelers,