Auto sector growth recovers in August by increased rural demand and higher exports

New Delhi [India], September 1 (ANI): India's automobile industry recorded strong growth in August 2025, as festive season buying and steady rural demand pushed sales across two-wheelers, tractors, and commercial vehicles. According to various company data, manufacturers reported gains that underline a recovery driven by both domestic consumption and global exports.

TVS Motor Company led the performance with its highest-ever monthly sales, crossing the five lakh mark at 509,536 units, up 30 per cent from a year earlier. Scooters and motorcycles were the key drivers, with sales climbing 36 and 30 per cent respectively. Exports remained firm, rising 35 per cent to more than 135,367 units, while electric vehicle volumes stayed steady at around 25,138 units due to supply constraints in magnets.

Commercial vehicle maker Ashok Leyland also posted stable results, selling 15,239 units in August, a 5 per cent increase over last year. The company's bus segment showed the strongest growth, jumping 36 per cent as passenger transport picked up pace. Medium and heavy trucks remained flat, while light commercial vehicles edged up one per cent, keeping the overall performance steady.

Bajaj Auto, meanwhile, balanced domestic weakness with export strength. The company sold 417,616 units, up 5 per cent year-on-year. While its domestic sales slipped eight per cent, exports surged 29 per cent. Commercial vehicle exports were especially strong, growing 58 per cent compared to last year, underscoring the brand's reliance on overseas demand to offset softer conditions at home.

In the farm segment, Escorts Kubota reported 8,456 tractor sales, a 27.1 per cent jump. Domestic tractor sales grew 26.6 per cent, while exports were up 35.5 per cent. However, its construction equipment business faced a slowdown, with sales falling 4.6 per cent as heavy rains disrupted projects and delayed activity.

With the upcoming festive season, lower interest rates, good monsoon and likely GST rebate may boost the sector in the coming months. (ANI)

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