In case of 2Ws, enquiries remained strong, fuelled by the onset of festivals such as Onam and Ganesh Chaturthi, says FADA President C. S. Vigneshwar.
| Photo Credit: RUPAK DE CHOWDHURI
Overall automobile retail sales in August 2024 witnessed a modest 2.84% YoY growth, led by 2-wheelers (2W) up 2.18% YoY, passenger vehicles (PV) up 0.93% YoY, and commercial vehicles (CV) up 8.55% YoY while tractors registered an exceptional 30.14% YoY growth as per data released by Federation of Automobile Dealers Association (FADA) on Monday.
Only 3-wheelers (3W) and construction equipment segments suffered a contraction of 2.26% and 26.45% YoY respectively.
“In case of 2Ws, enquiries remained strong, fuelled by the onset of festivals such as Onam and Ganesh Chaturthi, with many customers keen on auspicious-day deliveries. However, excessive rains and localised floods in North India disrupted rural mobility, while erratic supply of popular scooter models constrained conversions,” FADA President C. S. Vigneshwar said.
“The GST 2.0 announcement also led to buyers deferring purchases to September in anticipation of lower rates. Despite these factors, overall sentiment is steady, and dealers remain confident that the festive season ahead will unlock robust growth momentum,” he added.
He said for CVs while product acceptance and order clearances remained healthy — supported by new contracts from ecommerce and replacement demand — market sentiment in the last week was impacted by speculation around GST reductions, leading to deferment of purchases.
“For PV the month began on a positive note with healthy enquiries and festive bookings, but momentum slowed in the latter half as the announcement of GST 2.0 reforms led many customers to postpone purchases, anticipating a price reduction,” he said.
“At the close of August, average inventory levels stood elevated at around 56 days. Despite this temporary pause, demand fundamentals remain intact, supported by festive sentiment and strong customer interest in both ICE and EV models. Dealers expect September to deliver a sharper rebound, as GST clarity and auspicious festive days converge to unlock deferred demand,” he added.
For the near term outlook FADA said September will be a two-phase month for auto retails: a muted first half due to Shraddh and GST wait-and-watch, followed by a sharp surge as policy clarity, festive sentiment, and OEM schemes that mirror upcoming GST reductions converge.
Published – September 08, 2025 08:07 pm IST
