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Auto Sales Slow Down in August Ahead of New GST Rates

Auto Sales Slow Down in August Ahead of New GST Rates


Auto Sales in August: Vehicle sales in India slowed in August 2025 as consumers waited for the new GST pricing on cars and two-wheelers before buying. The Federation of Automobile Dealers Associations of India compiled the data, showing that retail automobile sales, measured by registrations on the government’s VAHAN website, rose 0.93% year-over-year to 3,23,256 units last month. Retail two-wheeler sales grew 2.18% to 13,73,675 units.

Auto Sales in August: Complete Details:


FADA President CS Vigneshwar said in a media statement on Monday, September 8, 2025: “The month started on a positive note with healthy inquiries and festive bookings, but sales slowed in the second half as the announcement of GST 2.0 reforms delayed decision-making. Heavy rains and floods disrupted walk-ins, while aggressive OEM targets and an uneven supply of high-demand models added pressure. Despite this brief lull, dealers expect a stronger recovery in September as GST clarity and auspicious holiday days unlock deferred demand.”

Also Read: Hyundai Announces Revised Car Prices After GST Update

Mahindra Cars Revised Prices:

Starting September 6, Mahindra & Mahindra Ltd. reduced vehicle prices by up to ₹1.6 lakh. The XUV3XO received the highest cut at ₹1.56 lakh, while the THAR 4WD (Diesel) received the lowest at ₹1.01 lakh. Following the GST change, Renault India also reduced prices, cutting up to ₹96,395 on its vehicles. The top-end Kwid dropped by ₹54,995, the Triber by ₹80,195, and the Kiger by up to ₹96,395.

Tata Motors Revised Prices:

Tata Motors announced on Friday that it would lower passenger car prices by up to ₹1.45 lakh to pass on the GST benefit to customers. The company cut Tiago and Tigor prices by ₹74,000 and ₹80,000, respectively, while Harrier and Safari received the highest cuts at ₹1,40,000 and ₹1,45,000.

Also Read: Mahindra Car’s Revised Prices After New GST Prices

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