August 2025 Auto Sales: Who’s Winning & Who’s Losing?

The automotive industry in August 2025 faced a mixed performance, with contrasting trends across various vehicle segments. While the passenger vehicle market stumbled, other segments such as two-wheelers, commercial vehicles and tractors showed positive growth.

Let’s break down the latest sales trends and industry outlooks across these segments.

Passenger Vehicles Slip Amid GST Rate-Cut Speculation

Despite the onset of the festive season, typically a high-demand period, the PV market faced a dip. This decline was largely due to uncertainty surrounding a possible GST rate cut for automobiles. Speculation about a reduction from 28% to 18% led dealers to limit stock intake from manufacturers, while potential buyers chose to postpone their purchase decisions. As a result, sales took a hit in August.

Here’s a quick glance at the top PV companies’ sales performance:

Commercial Vehicles Show Strong Recovery

CVs have been on an upward trajectory since July, fuelled by increased government spending and a pickup in infrastructure projects. These developments have spurred fleet demand and improved sentiment across the industry.

Here’s a look at the sales growth of some key players in the CV segment:

Two-Wheelers Continue Their Growth Streak

The two-wheeler (2W) segment continues to shine, with premium bikes leading the charge. Eicher Motors, in particular, has benefitted significantly from the ongoing trend, posting remarkable numbers.

Check out the year-on-year sales growth of key players in the two-wheeler segment:

Electric two-wheelers (E2Ws), which saw a brief setback due to rare earth magnet shortages in July, bounced back in August. Bajaj Auto rolled out 15,000 units of the Chetak, signalling recovery in the segment.

Ather Energy made a notable jump, securing third place in August and narrowing the gap with market leader Ola Electric. The company reported over 60% growth in registrations year-on-year.

Three-Wheelers: A Strong Growth Driver

The three-wheeler segment is another growth standout, with sustained demand for both passenger and goods transport applications. TVS Motor led the way, achieving a significant 47% growth in August.

Rural Demand Continues to Boost Tractors

Tractor sales remain strong, driven by favorable rural dynamics such as healthy monsoon rains and positive rural sentiment. The early onset of the festive season has further fueled this momentum. Tractors are essential for agricultural activities, and with the continued growth in rural consumption, demand remains high.

Exports Provide Cushion Amid Domestic Slowdown

While domestic sales are facing challenges, export demand for automobiles remains robust. Several key manufacturers have reported impressive year-on-year growth in exports, offering some relief during a difficult domestic period.

Outlook: A Positive Shift on the Horizon

The rural sector is in an optimistic phase, with increased cash flows for farmers thanks to favorable monsoon conditions. This bodes well for the tractor industry, with Kharif sowing surpassing last year’s acreage. As rural households continue to rise in aspiration, demand is expected to outpace urban consumption, sustaining the growth momentum in tractors.

On the policy front, a potential GST rate reduction could boost volumes helping automakers across segments. The PV and 2W segments are likely to see a broad-based recovery in the latter half of 2025, supported by improving consumer sentiment, softer interest rates and infrastructure investments.

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