The passenger vehicle segment of India reportedly registered 3,32,256 units in terms of retail sales in August 2025, according to the Federation of Automobile Dealers Association (FADA). This represented a 0.93 percentage-on-percentage-year (YoY) increase.
Month-on-month (MoM) sales dropped by 1.63 per cent in July 2025. At a year-to-date (YTD), sales were 16,40,760 units with growth of 2.64% relative to the same year in the previous year.
The festive season played a positive role during the early stage of the month. The introduction of GST 2.0 reforms, which will take effect on 22nd September, however, caused many clients to hesitate to buy their products in the hope that the price level will drop.
Brand-Wise Performance
Maruti Suzuki remained top with 1,27,905 units, slightly increased as compared to 1,27,119 units in August 2024 and earned a market share of 39.57. New products such as the Victoris, whose introduction is anticipated to be a 5-star product under the Bharat NCAP-rated SUV, are sure to enhance its market standing.
Mahindra followed in the second place with 43,632 units, which was higher than the 40,569 units generated the prior year, with an increment in share to 13.50. Hyundai, which was second in July 2025, moved to third with 42,226 units, and this introduced a negative variation, YoY.
Tata Motors recorded a fall in 38,286 units, as compared to 39,864 units in 2024, which cut its share to 11.84. On the other hand, Toyota had its successful growth at 24,954 units as compared to 23,582 units last year.
It was sluggish in Kia India with 18,212 units, and Skoda recorded strong gains with 8,111 units, which was against 6,280 units. MG Motor increased at an alarming rate as it sold 5,717 vehicles due to the positive response to the new Windsor.
More at the bottom, Honda dropped to 4,041 units, Renault to 2,593 units, and Nissan to 1,440 units, with all reporting a YoY decrease.
Luxury Car Segment
Mixed results were later achieved by luxury brands. Mercedes-Benz fell below 1,305 units and BMW India was thrusting 1,273 units, after 1,018 units. BYD (India) tripled its sales of 450 units, whereas Jaguar and Citroen registered their sales at 442 units and 409 units, respectively.
Outlook
Through deferred demand, there will be a diversion of demand into the coming festive months, with GST 2.0 set to bring down vehicle prices. Since new models and taxing incentives are on the same wavelength with customers, automakers expect even greater momentum in retail.
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