Maruti Suzuki, Tata Motors, Hyundai Motor, and Mahindra & Mahindra — auto makers have seen their sales dip this August compared to last year. Here, we examine whether the likely GST slab rejig could brighten prospects.
From Bajaj Auto to Hyundai Motor India, Mahindra & Mahindra, Maruti Suzuki India, and Tata Motors — most auto makers in India registered lower unit sales in August 2025, compared to the same period last year.
We take a look at the industry-wide numbers and whether the dip in demand is due to customers wanting to await the Centre's announcement on its proposed goods and services tax (GST) slab rejig.
Hyundai Motor India sales down 4.23% YoY
Sales of Korean auto maker Hyundai Motor India dropped 4.23 per cent YoY to 60,501 units in August 2025, compared to 63,175 units in the same month last year, PTI reported.
August sales included 44,001 units in the domestic market and 16,500 units exports, compared to 49,525 units domestically and 13,650 export units last year, it added.
Mahindra & Mahindra sales down 9% YoY
Mahindra & Mahindra (M&M) said SUV sales dropped 9 per cent YoY to 39,399 units in the domestic market last month, against 43,277 units last year, PTI reported.
According to Nalinikanth Gollagunta, CEO (Automotive Division), "With the final GST announcement approaching, we consciously decided to bring down the wholesale billing to minimise the stock being carried by our dealers."
He added that they look forward to GST rationalisation, "which would be a demand driver through the festive season".
Maruti Suzuki India sees India sales dip 8%
Maruti Suzuki India on September 1 reported a marginal dip in total sales to 1,80,683 units in August this year, compared to a total of 1,81,782 units sold in the same month of the last year, PTI reported.
Further, its total domestic passenger vehicle sales to dealers dropped 8 per cent YoY to 1,31,278 units from 1,43,075 units, it added.
Among the mini segment (Alto, S-Presso), sales declined to 6,853 units against 10,648 units in August 2024; while in compact cars (Baleno, Dzire, Ignis, Swift) sales jumped to 59,597 units from 58,051 units; and for SUVs (Grand Vitara, Brezza, Ertiga, XL6) sales fell 14 per cent YoY to 54,043 units from 62,684 units.
Tata Motors domestic sales down 2% to 68,482 units
Auto major Tata Motors on September 1 said its total wholesales rose 2 per cent year-on-year (YoY) to 73,178 units in August 2025, against 71,693 sold in the same month last year. However, domestic unit sales dipped 2 per cent YoY to 68,482 units, against 70,006 units in August 2024, PTI reported.
The company' total passenger vehicle units sold in India were also down 7 per cent YoY to 41,001, compared to 44,142 units sold last year; while total domestic commercial vehicle sales stood at 27,481 units, up 6 per cent YoY, against 25,864 units in August last year.
Quick peak: How did two-wheelers fare?
- In the two-wheeler space, Bajaj Auto reported a 12 per cent dip in domestic sales at 1,84,109 units in August from 2,08,621 units in the year-ago period.
- TVS Motor Company said its domestic two-wheeler sales registered a rise of 28 per cent year-on-year at 3,68,862 units in August this year.
- Motorcycle maker Royal Enfield said its domestic sales last month stood at 1,02,876 units against 65,623 units in August 2024, up 57 per cent.
- Suzuki Motor said domestic market sales were at 91,629 units, up 5 per cent YoY from 87,480 units in the same month last year.
Auto sales: Could a GST slab rejig brighten prospects?
Notably, the drop in auto sales comes amid the Centre's proposed GST slab rejig, which is considering collapsing the four slabs into two, except for a special rate for select items. This suggests that many are in wait-and-watch mode.
Announced by Prime Minister Narendra Modi on Independence Day, the GST Council, chaired by Finance Minister Nirmala Sitharaman, is set to discuss the matter on September 3-4.
The proposal under consideration includes bringing most goods under two slabs — 5 per cent and 18 per cent; with a special 40 per cent rate applicable on select items such as ultra-luxury cars and sin goods. At present, GST is a four-tier structure of 5, 12, 18 and 28 per cent slabs.
For automobiles, they are currently taxed at the highest slab of 28 per cent, combined with compensation cess ranging from 1-22 per cent, effectively taking total taxes between 29-50 per cent depending on the type of car.
A drop into the 18 per cent rate would bring big relief for auto buyers.