The government has reduced GST rates by 10 percent on cars and two -wheelers (bikes), which is likely to increase sales during festivals in September and October. The sale of automobiles slowed down in India in August 2025, as buyers were waiting for the new GST rates.
According to the registration data on the official website Vahan, retail car sales increased from 0.93% to 3,23,256 units from year to year, while two-wheelers’ retail sales increased by 2.18% to 13,73,675 units, these data Federation of Automobile Dealers Association of India (FADA).
FADA president CS Vigneshwar said in a media statement on Monday (8 September 2025), “The month started with good inquiry and booking of festivals, but in the second week, due to the announcement of GST 2.0 reforms, there was a delay in decision making. Heavy rains and floods affected the movement of customers, while the supply of popular models and OEM’s supply were also increasing.”
“Despite this temporary blockage… the dealers are hoping that sales will increase again in September, as clarity in GST and the auspicious festival will activate the previous demand together.”
