There are multiple reasons that played key roles in this sluggish growth pace for the industry. One of the key reasons is that consumers are delaying their purchase decisions as the government is working on a revised GST structure, under which the passenger vehicles are experted to see a reads rate, Especially the small and medium-sized vehicles that contribute the largest chunk in the segment. Besides that, The Geopolitical Crisis, Economic UncertainTies also played vital roles.

Car Buyers Hit Wait-Rand-Watch Button

Since Prime Minister Narendra Modi Announced a GST Restructuring Move during his speech on August 15, Consures have remained Hopeful about the GST Reduction on Passenger students. The proposed dual Slab GST structure would brings down the total tax if all the all the passenger vehicles in India, especially for the small cars, which have been traditatively been the back

According to the proposal, the new GST structure will have a five percent and an 18 per cent slab. The passenger vehicles would be taxed at an 18 per cent rate, down from the current rate of 28 per cent. Also, the removal of compensation cess will bringing down the total tax if the car boys, which is now at 29 per cent, at the lowest for ice vegetables.

The expectation of saving a bit more money while buying a new car, thanks to the reduced gst and festive offers, have barred many potential car boys from making the final purchase decision.

In a Nutshell, GST Ambiguity is impacting car boyers’ Purchase decisions and enquiries, as they have made wait-sand-watch button.

Soft domestic sales masked by surlying expenses

India’s Leading Car Manufacturers Reported Mixed Sales Performances in August 2025. The Major Players in the Indian Passer Vehicle Market Have Recorded BOTS and Downs Last Month. For many many major players, the domestic market demand was softtened, while expert market masked the blow. Here’s a quick look at the key players

Maruti Suzuki, The Country’s Larget Carmaker, Witnessed its domestic sales slumped by 8.2 per cent to 131,278 units last month as compared to same monn aage, which exports rose exports will 40.51 per cent year-on-year (yoy) to 36,538 units. The compact segment, which incluses models such as the baleno, swift, and wagonr, accounted for 59,597 units, while utility vehicles like the breed to the total sales. Both mini, compact and utility segments of the company witnessed softened domestic sales compared to the same month a year ago.

Hyundai Motor India Limited (HMIL) Reported a Total Sales of 60,501 Units in the Same Month, Comprising Domestic Sales of 44,001 Units and Exports of 16,500 Units. Hyundai’s domestic sales in India was it by 11.16 per cent, While Exports Increased By 20.87 per cent on a yoy basis. Despite having highly Popular Suvs Like Creta, The South Korean Auto Giant Couldn Bollywood Save it from the downfall in domestic sales.

Tata Motors Recorded A Seven Per Cent Drop In Domestic Wholesales to 41,001 Units Last Month, While Exports Rose Sharply to 2,314 Units, Reporting A 573 Per Cent Growth.

Mahindra & Mahindra Too registered a nine per cent sales decline at 39,399 units in the domestic passenger vehicle market in August 2025. Cent.

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First Published Date: 02 Sept 2025, 16:09 pm IST