Will new GST reforms save Bajaj Auto from slumping domestic two-wheeler sales?

Bajaj Auto's August sales data reveals a significant export surge despite a concerning dip in domestic vehicle sales. The industry anticipates GST reforms and the upcoming festive season will help reverse the domestic sales trend.

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Bajaj Auto saw its total domestic sales slump in August. However, a massive jump in exports helped one of India’s renowned two-wheeler and three-wheeler makers regain overall growth.

Total domestic sales for August 2025, including commercial vehicles, fell by 8 per cent year-on-year to 2,32,398 units. In the same month, exports jumped by 29 per cent to 1,85,218 vehicles.

This led to a 5 per cent year-on-year growth in total vehicle wholesales, including exports, at 4,17,616 units in August.

But the major dip in domestic two-wheeler sales is a concern. For the month, domestic two-wheeler sales slipped 12 per cent to 1,84,109 units.

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The industry expects the new GST reforms to help it recover from the latest slump as the festive season begins in September, starting with Onam.

The GST Council, chaired by Finance Minister Nirmala Sitharaman, is set to meet on September 3-4 to deliberate on moving to a two-slab taxation.

The season, which spreads to the end of the year, sees Indians buy more vehicles. It is usually a time when many major automakers see major spikes in sales volumes.

Hero MotoCorp, India’s leading two-wheeler maker by sales, is expected to post its August monthly sales numbers this week. Bajaj Auto is fourth in yearly sales, after Hero MotoCorp, Honda Motorcycle & Scooter India, and TVS Motor Company.

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