India’s Auto Sales Stay Strong in August Despite GST Uncertainty: Report

New Delhi – India’s automobile sector delivered resilient retail sales in August, buoyed by festive-season demand, even as customers weighed the potential impact of the upcoming GST revisions, according to a report by HSBC Global Investment Research.

The report noted a rise in enquiries across segments, supported by higher-than-usual discounts. However, it warned that sales momentum could slow in the next two weeks as buyers may delay purchases in anticipation of a GST cut. September volumes may also be impacted by the 15-day ‘shraad’ period, considered inauspicious for major purchases.

Tractor demand, meanwhile, is expected to remain robust, backed by strong monsoons and healthy reservoir levels. In August, Mahindra & Mahindra’s (M&M) domestic volumes rose 28% YoY, while Escorts grew 27% YoY.

Electric vehicles continued gaining ground. EV four-wheeler penetration reached 4.5% in August, with Tata commanding 40% market share, followed by M&M at 19%, while MG slipped to 28%. In the two-wheeler EV segment, penetration stood at 7.6%, translating to 1.4 lakh retail sales. TVS sold 24,000 units, Ather 18,000, and Bajaj 12,000.

Among major automakers:

• Maruti Suzuki’s volumes dipped 1% YoY as an 8% fall in domestic sales was balanced by a 41% surge in exports. Domestic car sales rose 5% YoY.

• M&M’s SUV wholesale fell 9% YoY to 39,400 units.

• Tata Motors’ PV volumes slipped 10% YoY, though EVs surged 44%.

• Hyundai’s domestic sales fell 11%, but exports climbed 21%.

• Bajaj Auto’s domestic two-wheeler sales fell 12%, while exports jumped 25%.

• TVS Motors saw 2W volumes rise 30% YoY, with domestic up 28% and exports up 36%.

• Royal Enfield’s domestic volumes surged 57% YoY, with exports growing 39%.

Commercial vehicles also posted modest growth, with volumes up 5% YoY, led by 6% growth in LCVs and MHCVs, while bus sales rose 3%.

With inputs from IANS