India's passenger vehicles growth in slow lane as sales slip 9% in August

SIAM said the decline is likely due to the recalibration of dispatches by manufacturers

India's passenger vehicles sales in August slipped 8.8 percent to 321,840, compared to 352,921 in the year-ago period over recalibration of dispatches by manufacturers, the Society of Indian Automobile Manufacturers (Siam) said on September 15.

However, the total sales of three wheelers and two wheelers posted a growth of 8.3 percent and 7.1 percent respectively in August, SIAM said. The growth was driven by passenger carriers and goods carriers. However, the e-rickshaw segment fell sharply by 49.4 per cent to 1,344 units, while e-cart sales surged 362.9 per cent to 810 units.

The three-wheeler segment saw its highest-ever sales for August, growing 8.3 percent on-year to 75,759 units from 69,962 units in August 2024.

Two-wheeler sales rose 7.1 percent to 18,33,921 units in August 2025 compared to 17,11,662 units last year. Scooters grew 12.7 percent to 6,83,397 units, while motorcycles saw a modest 4.3 percent rise to 11,06,638 units.

Rajesh Menon, director general, Siam said, “Sales of passenger vehicles in August 2025 de-grew by 8.8 percent, posting sales of 3.22 lakh units as compared to August of previous year, primarily due to recalibration of dispatches by passenger vehicle manufacturers. Three wheelers posted their highest ever sales of August in 2025 of 0.76 Lakh units, with a growth of 8.3 percent as compared to August 2024. Two-wheeler segment grew by 7.1 percent in August 2025, as compared to August 2024, with sales of 18.34 Lakh units."

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 quadri cycles during August 2025 stood at 26,93,049 units.