Auto Sales Roundup August 2025: Exports and EVs Drive Gains Amid Mixed Domestic Demand

India’s auto sector delivered a patchy performance in August 2025 as leading passenger vehicle and two-wheeler makers reported divergent sales trends. While companies such as Toyota, Tata Motors, TVS Motor, and JSW MG Motor notched double-digit growth, others like Maruti Suzuki and Hyundai saw domestic slowdowns cushioned by strong exports. The month also highlighted the rising role of electric vehicles (EVs) in driving overall momentum, even as speculation over a possible Goods and Services Tax (GST) cut weighed on sales activity.

GST Speculation Dampens Festive Spirit

Industry players said expectations of up to a 10% GST reduction on small vehicles prompted many buyers to postpone purchases, while automakers moderated wholesale dispatches to manage dealer inventory. The uncertainty dented festive-season momentum, with overall passenger vehicle (PV) volumes slipping 7.3% year-on-year to nearly 3,30,000 units in August 2025, compared to around 3,56,000 units a year earlier.

Among the top five carmakers, Maruti Suzuki India, Hyundai Motor India, Tata Motors, and Mahindra & Mahindra posted lower volumes during the month, while Toyota Kirloskar Motor was the only major player to record growth.

Passenger Vehicles: Exports Take the Wheel

Maruti Suzuki, the country’s largest carmaker, sold 1,80,683 units, down 0.6% from a year earlier. A 7.5% slide in domestic dispatches was offset by a sharp 40% jump in exports, which touched 36,538 units.

Hyundai Motor India posted sales of 60,501 vehicles, a 4.3% decline, as domestic volumes fell to 44,001 units. Exports, however, rose 21% to 16,500 units, underlining the South Korean automaker’s growing overseas focus.

Tarun Garg, Whole-Time Director and Chief Operating Officer, Hyundai Motor India, added: “Our goal is to establish India as a strategic manufacturing base for emerging economies and to become Hyundai’s largest export hub outside South Korea.”

Tata Motors reported 73,178 units, up 2% year-on-year. Domestic sales eased slightly, but exports and EV volumes provided a lift. Its EV portfolio hit a record 8,540 units, marking 44% growth.

Mahindra & Mahindra (M&M) held steady at 75,901 units, with SUV sales dipping 9%. EVs were the standout, surging nearly tenfold to 3,495 units, signalling rising acceptance of its new-energy models.

“August witnessed relatively robust demand in the SUV segment amidst anticipated GST rate changes,” said Nalinikanth Gollagunta, CEO, Automotive Division, Mahindra. “With the final GST announcement approaching, we consciously decided to bring down the wholesale billing to minimize the stock being carried by our dealers. We look forward to the GST rationalisation, which would be a demand driver through the festive season.”

Among global brands, Toyota Kirloskar Motor (TKM) clocked 34,236 units, an 11% rise, sustaining its steady growth trajectory. JSW MG Motor India saw volumes jump 52% to 6,578 units, powered by the Windsor EV. Kia India registered its best monthly EV sales yet, delivering 441 units of the Carens Clavis EV — a more than 20-fold increase over last year.

Also Read: India's Auto Sector Shows Mixed Signals In Q1FY26 - Report | Republic World

Two-Wheelers: Strong Double-Digit Gains

The two-wheeler segment saw robust demand. Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, reported an 8% rise in dispatches at 5,53,727 units in August 2025. VAHAN data showed 3.44 lakh registrations (excluding Telangana), reflecting stable demand across urban and rural markets. The company acknowledged that the ongoing monsoon season had weighed on retail activity but expressed confidence in a rebound during the festive months, aided by GST rationalization.

Honda Motorcycle & Scooter India (HMSI) reported a marginal dip in sales for August 2025, with 5,34,861 units sold against 5,38,852 units a year ago. Of this, 4,81,021 units were sold domestically while 53,840 were exported. In Contrast, TVS Motor Company recorded its best August ever with 5,09,536 units, up 30% year-on-year. Motorcycles, scooters, and three-wheelers all grew at double-digit rates, while EV volumes inched up to 25,138 units. 

Bajaj Auto sold 4,17,616 units, rising 5%. A 29% jump in exports offset sluggish domestic sales. Suzuki Motorcycle India Pvt Ltd (SMIPL) posted a 9% growth, selling 1,13,936 units compared to 1,04,800 units in August 2024. The company’s domestic sales rose 5% to 91,629 units from 87,480 a year earlier.