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In August, the auto industry recorded robust growth of 12% MoM and 9% YoY, with strong performance across most segments, except for PVs, which saw restrained dispatch growth as OEMs adjusted inventory levels amid consumer purchase postponements driven by GST reforms, preventing overstocking until demand stabilizes. CV volumes surged, driven by renewed demand for trucks post-monsoon, bolstered by infrastructure development and heightened e-commerce activity, with LCVs and buses also contributing significantly. Tractor demand remains resilient, with expectations of sustained momentum into the coming months, fuelled by a favourable monsoon and optimistic rural sentiment ahead of the Rabi season. This rural buoyancy is likely to support 2W growth, which appears less impacted by GST-related buyer hesitancy, positioning the segment for steady demand.

Automobile Sales August - 2025

PV Segment

The PV segment reported a 9% YoY and 6% MoM decline in dispatches, underscoring demand moderation as buyers deferred purchases and dealers curtailed stock orders ahead of GST reforms. Within OEMs, in sequential terms TAMO stood out with volume growth on the back of record-high EV dispatches, likely supported by its South Africa expansion, while HMIL continued to face volume volatility yet maintained its position as the second-largest player. MSIL and M&M posted domestic declines, broadly in line with the industry trend. GST rate cuts are expected to revive small cars and other categories despite the subdued festive build-up. In response to softer domestic momentum, OEMs pivoted towards global markets, with export dispatches rising 14% MoM and 38% YoY, highlighting a stronger strategic emphasis on exports to cushion near-term domestic weakness.

CV Segment

The CV segment in August recorded a 3% MoM and 6% YoY volume growth, propelled primarily by robust demand in the Trucks category, which surged 11% MoM and 18% YoY. This uptick was fuelled by heightened e-commerce activity, last-mile delivery demand, and anticipation of a post-monsoon recovery in construction activities, consistent with historical trends, with M&M leading the charge. LCVs sustained momentum, posting an 8% MoM and 6% YoY volume increase, driven by TAMO's strong performance for the second consecutive month. The Bus segment exhibited a divergent trend in August, with volumes declining 19% MoM but growth holding steady at 7% YoY, reflecting seasonal moderation amid continued structural demand.

Tractor Segment

August tractor dispatches grew 2% MoM and 28% YoY, but overall sequential growth remained muted as M&M's 2% MoM decline, driven by anticipation of IMD's Kharif harvest risks, weighed on industry volumes. Nevertheless, the segment showcased strong international traction, with export volumes surging 10% MoM and 37% YoY, reflecting robust global demand. This export-driven growth highlights the industry's resilience and expanding footprint in overseas markets, despite domestic caution, positioning the sector for sustained growth as international opportunities continue to strengthen.

2W Segment

In August, the 2W segment exhibited robust growth of 17% MoM and 13% YoY, underscoring a positive market momentum. Domestic dispatches, representing 77% of volumes (versus 73% last month), indicate proactive anticipation by dealers and OEMs of demand escalation as 2W sales ramp up ahead of the festive season, prompting earlier dispatch increases. Supportive monsoon conditions, enhanced rural sentiment, and steady fuel prices have reinvigorated demand in rural and tier-2/3 areas, where purchases are predominantly seasonal rather than speculative, minimizing GST policy impacts. This droves domestic dispatches up 25% MoM and 8% YoY, with HERO dominating volume contributions and TVS leading percentage gains. Exports, conversely, dipped 3% MoM industrywide, except for BAJAJ's flat performance; exports rose 33% YoY, spearheaded by HERO. In e2W, TVS/BAJAJ/HERO recorded 17,541/ 16,699/4,782 units, yielding market shares of 20%/19%/5%

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