Three-Wheeler Sales Hit Record High in August 2025 as GST Cut Nears

By Amit Jangra | Published Date : September 16, 2025

India’s three-wheeler sales rose 8.3% in August 2025, driven by strong demand and anticipation of a GST cut across passenger and loading autos.

India’s 3-wheeler market had a big August this year. With 76,759 units sold, sales were up 8.3% from last August, according to data from SIAM. The reason? A possible cut in GST that’s making buyers act early.

Both passenger autos and loading autos contributed to the jump, showing how important these vehicles are becoming — not just for transport, but also for small business deliveries.

Passenger Autos Continue to Lead

Table of Contents

1. Passenger Autos Continue to Lead

2. Loading Autos See Strong Push from Last-Mile Deliveries

3. Electric Three Wheelers: Mixed Signals

4. Industry Voices Support GST Change

5. April–August Snapshot

6. Looking Ahead

Read More: Force Motors Reduces Prices Significantly After GST Rate Cut

Out of the total, passenger 3 wheelers made up the biggest share — over 63,800 units, a rise of nearly 9%. These vehicles remain a favorite for city commuters. Affordable, easy to maintain and widely available, they’re often the go-to option for last-minute trips or daily routes.

Interestingly,  more operators are looking into electric passenger autos now. Clean, quiet and cheap to run, they’re starting to gain attention — though there’s still some hesitation.

Loading Autos See Strong Push from Last-Mile Deliveries

Sales of loading 3 wheelers climbed to nearly 9,800 units — a 15.6% jump from last year. These compact vehicles fit well in narrow streets and are a common sight in crowded urban areas. For many small shop owners and local delivery services, especially in the e-commerce or grocery space, they’re not just helpful — they’ve become a necessity.

Electric Three Wheelers: Mixed Signals

Electric 3 wheelers had a bit of a mixed month. On one hand, e-carts saw explosive growth — over 360%, hitting 810 units. That’s a big leap, showing rising trust in electric for local deliveries.

But e-rickshaws didn’t do as well — sales dropped nearly 50%. Maybe supply chain issues, maybe pricing concerns — hard to say. The electric passenger market still seems to be figuring itself out.

Industry Voices Support GST Change

SIAM’s Director General, Rajesh Menon, shared his view:

“Reducing GST can make vehicles more affordable. That means more people will buy and the auto sector gets a boost — especially in the festive season.”
The possible GST cut is expected to benefit not just conventional 3 wheelers, but also push more buyers towards electric three wheelers, as running costs are lower and incentives may follow.

April–August Snapshot

From April to August 2025:

→ Production grew by 4.6% across all vehicle categories
→ Domestic three-wheeler sales stayed near 99.8 lakh units
→ Exports rose 25.3%, reflecting global interest in Indian-made autos

Companies like Bajaj Auto continue to lead the pack, thanks to their wide range of passenger and goods three wheelers, both ICE and electric.

Looking Ahead

With the festive season around the corner and a GST reduction on the horizon, the three-wheeler sector is expected to maintain strong momentum. Buyers may rush to invest in loading autos and electric three wheelers, while city operators will likely continue expanding their passenger fleets.

The road ahead looks promising—not just for sales, but for a cleaner and more efficient urban transport future.

Also Read: Tata's Big Festive Offer – Get an LED TV + ₹65,000 Bonus on SCVs and Pickups

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Frequently Asked Questions on 3 Wheelers

1. Why did three-wheeler sales increase in August 2025?

Ans: Sales rose due to high demand in urban transport and delivery services, along with anticipation of a government GST reduction on vehicle purchases.

2. Which segment of three-wheelers saw the highest growth?

Ans: Passenger three-wheelers led the growth with 63,854 units sold, while electric goods carriers also saw a major boost, growing over 360% in August 2025.

3. How are electric three-wheelers performing in India?

Ans: Electric three-wheelers are gaining attention, especially for goods delivery. E-carts saw strong growth, but electric passenger rickshaw sales declined during the same period.

4. What impact will the GST cut have on the three-wheeler market?

Ans: The expected GST cut is likely to boost both conventional and electric three-wheeler sales, making vehicles more affordable and encouraging cleaner transport solutions.

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