Car Sales Fall in August, but Two and Three-Wheelers Ride Festive Demand

Pune: Automobile industry in India reported a mixed sales performance in August 2025 with passenger vehicle sales declining, while three-wheeler and two-wheeler segments registered growth, the Society of Indian Automobile Manufacturers or Siam said on Monday.

Passenger vehicle sales dropped 8.8 per cent on year at 3.2 lakh units in August 2025, with the auto industry attributing the fall to recalibration of dispatches by manufacturers to dealers.

On the other hand, the three-wheelers clocked its highest-ever sales for August, growing 8.3 per cent on year at 75,759 units. The growth was driven by passenger carriers and goods carriers.

Two-wheeler sales also rose 7.1 per cent on year to 18.33 lakh units in August 2025. Scooters grew 12.7 per cent on year to 6.83 lakh units, while motorcycles saw a modest 4.3 per cent rise to 11.06 lakh units.

“Sales of passenger vehicles in August 2025 de-grew by 8.8 per cent, posting sales of 3.22 lakh units as compared to August of previous year, primarily due to recalibration of dispatches by passenger vehicle manufacturers,” said Rajesh Menon, director general at Siam.

Menon said the GST Council's decision to cut the tax rates on vehicles will go a long way in enabling broader access to mobility and inject fresh momentum into the Indian automotive sector in the upcoming festive season.

The overall production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles during August 2025 stood at 26.93 lakh units.