<p>New Delhi: Passenger vehicles sales dropped by 1.63 per cent month-on-month in August as customers postponed purchases anticipating price reduction following announcement about GST reforms, the Federation of Automobile Dealers Associations (FADA) data showed on Monday.</p>.<p>“The month began on a positive note with healthy enquiries and festive bookings, but momentum slowed in the latter half as the announcement of GST 2.0 reforms led many customers to postpone purchases, anticipating a price reduction,” the industry body said.</p>.<p>Heavy rains and floods in some regions further disrupted walk-ins, while uneven supply of high-demand models and aggressive original equipment manufacturer (OEM) targets added to the pressure, it added.</p>.<p>The announcement about GST reform was made by Prime Minister Narendra Modi in his Independence Day address on August 15.</p>.<p>The GST Council on September 3 approved overhaul in the indirect tax structure. The goods and services tax (GST) rates are proposed to be significantly lowered on a host of items, including automobiles. The GST on small cars, buses and other commercial vehicles like trucks and delivery vans, are proposed to be cut to 18% from 28% with effect from September 22.</p>.<p>“August traditionally ushers in festive cheer, with Onam and Ganesh Chaturthi heralding the season of joy. Customers continued to show strong enthusiasm with high enquiries and robust bookings, ensuring that vehicles are aligned for auspicious festive deliveries. The only issue was conversion, which saw slowdown due to benefits of GST 2.0 kicking in September,” said C S Vigneshwar.</p>.Car sales skid in August as buyers wait for tax cut verdict.<p>Total passenger vehicle sales in August stood at 3,23,256 units, which was 1.63% lower when compared with July data of 3,28,613 units. However, on a year-on-year basis it was 0.93% higher.</p>.<p>At the close of August, average inventory levels for passenger vehicles stood at around 56 days.</p>.<p>Overall retail sales of vehicles in August were only 0.02% higher when compared with the previous month. Only the two-wheeler category witnessed an increase. On a year-on-year basis the overall retail sales in August was 2.84% higher.</p>.<p>On near-term outlook, FADA said, “September will be a two-phase month: a muted first half due to Shraddh and GST wait-and-watch, followed by a sharp surge as policy clarity, festive sentiment, and OEM schemes that mirror upcoming GST reductions converge.” </p>.<p>These schemes allow customers to book vehicles now while enjoying GST-aligned benefits, ensuring timely deliveries on their preferred auspicious dates such as Navratri and Durga Puja. Dealers across categories expect this strategy to unlock deferred demand and smoothen festive season supply, it added.</p>.<p>Most of the auto companies have announced reduction in vehicle price effective from September, the day GST rate cut is slated to come into effect.</p>
<p>New Delhi: Passenger vehicles sales dropped by 1.63 per cent month-on-month in August as customers postponed purchases anticipating price reduction following announcement about GST reforms, the Federation of Automobile Dealers Associations (FADA) data showed on Monday.</p>.<p>“The month began on a positive note with healthy enquiries and festive bookings, but momentum slowed in the latter half as the announcement of GST 2.0 reforms led many customers to postpone purchases, anticipating a price reduction,” the industry body said.</p>.<p>Heavy rains and floods in some regions further disrupted walk-ins, while uneven supply of high-demand models and aggressive original equipment manufacturer (OEM) targets added to the pressure, it added.</p>.<p>The announcement about GST reform was made by Prime Minister Narendra Modi in his Independence Day address on August 15.</p>.<p>The GST Council on September 3 approved overhaul in the indirect tax structure. The goods and services tax (GST) rates are proposed to be significantly lowered on a host of items, including automobiles. The GST on small cars, buses and other commercial vehicles like trucks and delivery vans, are proposed to be cut to 18% from 28% with effect from September 22.</p>.<p>“August traditionally ushers in festive cheer, with Onam and Ganesh Chaturthi heralding the season of joy. Customers continued to show strong enthusiasm with high enquiries and robust bookings, ensuring that vehicles are aligned for auspicious festive deliveries. The only issue was conversion, which saw slowdown due to benefits of GST 2.0 kicking in September,” said C S Vigneshwar.</p>.Car sales skid in August as buyers wait for tax cut verdict.<p>Total passenger vehicle sales in August stood at 3,23,256 units, which was 1.63% lower when compared with July data of 3,28,613 units. However, on a year-on-year basis it was 0.93% higher.</p>.<p>At the close of August, average inventory levels for passenger vehicles stood at around 56 days.</p>.<p>Overall retail sales of vehicles in August were only 0.02% higher when compared with the previous month. Only the two-wheeler category witnessed an increase. On a year-on-year basis the overall retail sales in August was 2.84% higher.</p>.<p>On near-term outlook, FADA said, “September will be a two-phase month: a muted first half due to Shraddh and GST wait-and-watch, followed by a sharp surge as policy clarity, festive sentiment, and OEM schemes that mirror upcoming GST reductions converge.” </p>.<p>These schemes allow customers to book vehicles now while enjoying GST-aligned benefits, ensuring timely deliveries on their preferred auspicious dates such as Navratri and Durga Puja. Dealers across categories expect this strategy to unlock deferred demand and smoothen festive season supply, it added.</p>.<p>Most of the auto companies have announced reduction in vehicle price effective from September, the day GST rate cut is slated to come into effect.</p>