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Time of India
08-08-2025
- Automotive
- Time of India
Gujarat passenger vehicle sales dip 4.8% YoY in July
Ahmedabad: Passenger vehicle sales in Gujarat fell by 4.8% year-on-year in July 2025, down to 29,269 units from 30,744 in July 2024, according to data released by the Federation of Automobile Dealers Association (Fada). Tired of too many ads? go ad free now The decline in car sales contributed significantly to the marginal 0.42% drop in overall vehicle retail across the state. Dealers point to multiple demand-side and supply-side challenges as reasons behind the slowdown. Weak buyer sentiment, affordability concerns, and ongoing strain in the entry-level car segment weighed heavily on volumes. At the same time, supply constraints are proving to be a growing concern, particularly in the SUV category, where several popular new models are facing limited availability and prolonged waiting periods. Fada Gujarat state chairperson Pranav Shah said, "Dealers are struggling with supply issues, especially for some newly launched models which are not easily available in certain brands. In the SUV segment, waiting periods are also high in certain cases which is impacting retail numbers." "While the marginal dip in July was also linked to calendar shifts, such as the Rathyatra festival moving from July last year to June this year, the underlying market sentiment remains cautious. Little degrowth in two-wheeler and car sales was expected in July. If we consider that effect, July was overall a good month for the auto industry," Shah added. "It appears that market saturation set in this year, especially when compared to the strong sales seen over the past two years. The current volatility, both economic and geopolitical, is making buyers cautious, and this hesitation is more visible in urban centres where demand has clearly slowed. Tired of too many ads? go ad free now I believe many potential buyers are holding off in anticipation of new, affordable entry-level electric cars. That said, we are seeing a marginal uptick in rural sales, which is a positive sign," said a senior RTO officer. "Volatility in the stock market significantly impacted investor confidence, and that is directly reflecting in cautious consumer spending. Despite positive factors like a good monsoon and strong overall earnings, the broader geopolitical scenario and developments like US tariff actions are creating uncertainty. These elements are weighing on retail investor sentiment, which in turn is slowing down big-ticket purchases like cars," said Jigar Vyas, CEO of a car dealership based in Ahmedabad. Despite the subdued July performance, the industry remains optimistic about a revival in August, as a strong festive line-up — Rakshabandhan, Janmashtami, Independence Day and Ganesh Chaturthi — coincides with positive rural indicators.
The Hindu
07-08-2025
- Automotive
- The Hindu
July auto retail sales decline 4.31% YoY: FADA
Overall all auto mobile retail sales in July 2025 fell 4.31% from the same period last year indicating the sluggishness in the market. As per data released by Federation of Automobile Dealers Association (FADA), while two wheelers (2W) category fell 6.48% year on year (YoY), passenger vehicles (PV) and construction equipment (CE) segments fell 0.81% and 33.28% respectively. On the other hand, three wheelers (3W), tractors and commercial vehicles (CV) grew 0.83%, 10.96% and 0.23% YoY respectively. FADA President C.S. Vigneshwar said, 'After three consecutive months of growth, India's auto retail sector applied the brakes in July, with overall retails declining by 4.31% YoY.' 'This pullback largely stems from a high-base effect in July 2024, when an extreme heat wave was immediately followed by excessive rainfall, constraining volumes before a rebound later that month,' he said. In the 2W space, July saw a decline as crop-sowing activities and prolonged heavy rains dampened rural footfalls more sharply than urban demand,' he said. 'Dealers are nevertheless confident of a post-monsoon uptick, with several purchase decisions deferred to August ahead of the festive season — making strategic stock alignment and focused rural-urban engagement imperative for reviving momentum,' he added. The PV segment contracted due to Aashaada period and despite rural markets doing well. Urban demand remained muted due to low enquiry and restrained customer sentiment. 'With inventory levels steady at around 55 days, calibrated discounting, streamlined finance facilitation and intensified urban outreach will be crucial for sustaining festive-season growth,' the FADA president said. CV posted a modest increase in sales led by urban momentum. Dealers cited new-model launches, aggressive marketing support, bulk institutional orders and timely stock availability as key drivers, alongside targeted schemes that bolstered school-bus volumes. In contrast, rural haulage demand remained fragmented amid heavy rainfall, seasonal softness in cement, coal and construction logistics, and slower financier disbursements, prompting many buyers to defer purchases to the post-monsoon period, he said. Finally, the tractors segment delivered robust performance due to timely release of enhanced agricultural subsidies and favourable monsoon rains which spurred a marked increase in purchase intent, he added.
Time of India
07-08-2025
- Automotive
- Time of India
Indian auto dealers hopeful ahead of festive season, US tariff fears persist
India's upcoming festive season is expected to lift near-term sentiment among auto dealers , but U.S. tariffs could dent consumer confidence, prompting higher household savings and weighing on discretionary spending, including vehicles, the Federation of Automobile Dealers Association (FADA) said on Thursday. Vehicle dealers expect major festivals, including Rakhi, Janmashtami, Independence Day and Ganesh Chaturthi , along with targeted promotional schemes and healthy stock levels to drive sales. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program However, the anticipated wealth erosion from fresh tariffs by the U.S. could erode consumer confidence, trigger a precautionary rise in household savings and exert pressure on discretionary spending, including on vehicles, FADA said.
Mint
01-08-2025
- Business
- Mint
GST mop-up at ₹1.96 trillion in July, but higher refunds slow net revenue growth
New Delhi: The Centre and state governments collected ₹ 1.96 trillion in Goods and Services Tax (GST) in July, a 7.5% increase from the same period last year, official data showed on Friday. However, a sharp rise in tax refunds moderated the growth in net revenue. After adjusting for refunds, the net GST revenue stood at ₹ 1.69 trillion, just 1.7% higher than the year-ago period. Businesses received ₹ 27,000 crore in tax refunds in July, marking a 67% increase from the same month last year. Despite the surge in refunds, cumulative GST revenue for the current fiscal year has grown 8.4% to ₹ 7.1 trillion after refunds. Gross central and state GST receipts, prior to refunds, rose more than 9% in July. Tax collections on inter-state sales and imports increased by 5%. However, GST compensation cess, levied on items such as tobacco, carbonated beverages, and automobiles, particularly sport utility vehicles, contracted by 2% year-on-year in July. The Federation of Automobile Dealers Association (FADA) had noted last month that automobile retail grew by just 0.73% year-on-year in June, which is typically the weakest month for auto sales. Taxes on June transactions are collected in July. The 117% increase in refunds on domestic sales, much of which may be attributed to inverted duty structure refunds, underscores the urgency of rate rationalisation under GST, according to Vivek Jalan, partner at Tax Connect Advisory, a multi-disciplinary tax consultancy. Instances where raw materials are taxed at higher rates than the final product often lead to refund claims, an anomaly the government has previously tried to address but has not fully resolved. While these inputs are used by businesses, the tax rate visible to the end consumer is that of the final product, making upward rate corrections politically sensitive. 'The increase in refunds augers well for businesses as it indicates stability in the online refund processes and quicker refund sanctions,' said M.S. Mani, partner at Deloitte India. Among large state economies, Maharashtra, Tamil Nadu, Karnataka, Gujarat, and Uttar Pradesh reported less than 10% annual GST revenue growth in July. In contrast, Punjab and Haryana each posted 12% growth, while Andhra Pradesh saw a 14% increase. GST revenues have steadily risen over the years, driven by economic expansion, greater formalisation, and enhanced compliance efforts. Robust data capture across the supply chain and cross-verification with other data sources have made tax evasion more difficult under the new regime. The GST Council is currently reviewing further rate rationalisation and simplification of the tax framework.
Mint
01-08-2025
- Business
- Mint
GST mop-up at ₹1.96 trillion in July, but higher refunds slow net revenue growth
New Delhi: The Centre and state governments collected ₹ 1.96 trillion in Goods and Services Tax (GST) in July, a 7.5% increase from the same period last year, official data showed on Friday. However, a sharp rise in tax refunds moderated the growth in net revenue. After adjusting for refunds, the net GST revenue stood at ₹ 1.69 trillion, just 1.7% higher than the year-ago period. Businesses received ₹ 27,000 crore in tax refunds in July, marking a 67% increase from the same month last year. Despite the surge in refunds, cumulative GST revenue for the current fiscal year has grown 8.4% to ₹ 7.1 trillion after refunds. Gross central and state GST receipts, prior to refunds, rose more than 9% in July. Tax collections on inter-state sales and imports increased by 5%. However, GST compensation cess, levied on items such as tobacco, carbonated beverages, and automobiles, particularly sport utility vehicles, contracted by 2% year-on-year in July. The Federation of Automobile Dealers Association (FADA) had noted last month that automobile retail grew by just 0.73% year-on-year in June, which is typically the weakest month for auto sales. Taxes on June transactions are collected in July. The 117% increase in refunds on domestic sales, much of which may be attributed to inverted duty structure refunds, underscores the urgency of rate rationalisation under GST, according to Vivek Jalan, partner at Tax Connect Advisory, a multi-disciplinary tax consultancy. Instances where raw materials are taxed at higher rates than the final product often lead to refund claims, an anomaly the government has previously tried to address but has not fully resolved. While these inputs are used by businesses, the tax rate visible to the end consumer is that of the final product, making upward rate corrections politically sensitive. 'The increase in refunds augers well for businesses as it indicates stability in the online refund processes and quicker refund sanctions,' said M.S. Mani, partner at Deloitte India. Among large state economies, Maharashtra, Tamil Nadu, Karnataka, Gujarat, and Uttar Pradesh reported less than 10% annual GST revenue growth in July. In contrast, Punjab and Haryana each posted 12% growth, while Andhra Pradesh saw a 14% increase. GST revenues have steadily risen over the years, driven by economic expansion, greater formalisation, and enhanced compliance efforts. Robust data capture across the supply chain and cross-verification with other data sources have made tax evasion more difficult under the new regime. The GST Council is currently reviewing further rate rationalisation and simplification of the tax framework. Citing the modest 1.7% growth in net GST receipts for July, Pratik Jain, partner at Price Waterhouse & Co LLP, said, 'The GST council may like to discuss possible measures to augment revenues in its next meeting…With GST compensation cess going away, states may also be a bit more concerned about the slowdown in GST collections.'
