New Delhi: In August 2025, top Indian carmakers including Maruti Suzuki, Hyundai, Tata Motors, and Mahindra & Mahindra saw a drop in vehicle dispatches to dealers. This slowdown comes as many potential buyers are waiting for a possible reduction in GST rates, which may make cars cheaper. The upcoming GST Council meeting on September 3-4 is expected to finalise a new two-slab tax structure that could impact automobile pricing.
Maruti Reports 8 percent Drop
India’s largest carmaker, Maruti Suzuki, saw an 8 percent year-on-year drop in domestic passenger vehicle dispatches, falling to 1,31,278 units in August 2025 from 1,43,075 units a year earlier. Sales of its mini cars like Alto and S-Presso dropped sharply, while compact car models such as Baleno, Dzire, and Swift saw a small increase. However, its utility vehicle range, including Ertiga and Brezza, declined 14 percent .
Hyundai and Mahindra See Sales Declines
Hyundai Motor India reported an 11 percent fall in dealer dispatches, with 44,001 units sold in August, down from 49,525 units in the same month last year. The company did not explain the drop, but said it remains focused on making India a global manufacturing hub.
Mahindra & Mahindra reported a 9 percent dip in utility vehicle sales, dispatching 39,399 units compared to 43,277 units in August 2024. M&M’s automotive CEO, Nalinikanth Gollagunta, said they deliberately reduced wholesale billing to avoid overstocking at dealerships ahead of the GST decision.
Tata Motors and Others Show Mixed Results
Tata Motors also faced a 7 percent drop, dispatching 41,001 units in August compared to 44,142 units the previous year. On the other hand, Toyota Kirloskar Motor (TKM) reported a slight 2 percent increase in domestic wholesales at 29,302 units.
TKM’s sales head Varinder Wadhwa noted that September will be a crucial month for the industry as it waits for clearer signals from the GST Council.
Two-Wheeler Segment Shows Mixed Trends
In two-wheelers, Bajaj Auto saw a 12 percent drop in domestic sales to 1,84,109 units, while TVS Motor Company reported a strong 28 percent increase with 3,68,862 units sold. Royal Enfield had an impressive 57 percent rise, selling 1,02,876 units, boosted by strong festive season demand.
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GST Reforms Awaited
Currently, most vehicles are taxed at 28 percent GST, with an added cess of 1-22 percent , making the total tax up to 50 percent for SUVs. The government is considering reducing the slabs to 5 percent and 18 percent, with a special 40 percent tax for ultra-luxury vehicles. If approved, this could make cars cheaper, encouraging postponed purchases.
