Passenger vehicle dispatches from companies to dealers declined 9% year-on-year to 3,21,840 units in August, as companies recalibrated supplies to adjust to low market demand.

Passenger vehicle wholesales stood at 3,52,921 units in August 2024.

Sales of passenger vehicles saw a dip primarily due to recalibration of dispatches by manufacturers, the Society of Indian Automobile Manufacturers (SIAM) Director General Rajesh Menon said in a statement on Monday (September 15, 2025).

Demand dipped in August, as customers postponed purchases in anticipation of the GST rate cut and the reduction in vehicle prices.

Two-wheeler dispatches, however, rose 7% year-on-year to 18,33,921 units last month, as compared to 17,11,662 units in the year-ago period.

Scooter sales rose 13% year-on-year to 6,83,397 units in August, while motorcycle dispatches rose 4% to 11,06,638 units last month.

Three-wheeler dispatches saw the highest-ever dispatch for the month of August at 75,759 units, an increase of 8% year-on-year, as against 69,962 units in August last year.

Menon said the government’s decision to reduce GST rates on vehicles will go a long way in enabling broader access to mobility and injecting fresh momentum into the Indian automotive sector in the upcoming festive season.

Effective September 22, petrol and diesel cars with engine capacities of up to 1,200 cc and 1,500 cc will attract 18% GST, while those above that will attract the highest 40%.

Electric vehicles will accrue GST of 5%.