After August slump, J&K auto dealers pin hopes on festive surge, GST 2.0 boost
Jammu, Sep 12: Federation of Automobile Dealers Associations (FADA) Jammu has exuded cautious optimism that September will mark the beginning of a strong growth cycle in J&K auto retail, after registering a downfall of 12.22 percent Year-over-Year (YoY) in August.
With GST 2.0 as a landmark reform, proactive Original Equipment Manufacturer (OEM) schemes and the onset of India’s biggest festivals, firm up its optimism for September against August slump.
Federation of Automobile Dealers Associations Jammu chairperson Sanjay Aggarwal points out that in J&K for August 2025, the data demonstrated a notable de-growth across several vehicle categories when compared to the same month last year.
Sharing statistics, he stated that the 2-Wheeler category witnessed a downfall of -10.55 percent at 9,201 units in August 2025, as compared to 10,286 units in August 2024.
The 3- category witnessed a downfall of -13.22 percent at 1,004 units in August 2025, as compared to 1,157 units in August 2024.
The commercial wheeler category, according to him, saw a downfall of -7.26% at 741 units in August 2025, as compared to 799 units in August 2024. The construction equipment category registered a downturn of -69.23% at 16 units in August 2025, as compared to 52 units in August 2024.
The Passenger Vehicle category witnessed a downfall of -15.18% at 3,946 units in August 2025, as compared to 4,652 units in August 2024. Similarly, in the tractor vehicle category, this downturn was -22.61 percent at 243 units in August 2025, as compared to 314 units in August 2024.
“In J&K total retail is 15,151 in August 2025 as compared to 17,260 in August 2024 thereby registering a downfall of 12.22 percent YoY. Unfortunately, the data for August shows a notable decline across several vehicle categories when compared to the same month last year. While this trend mirrors some national patterns, there are specific regional factors that have intensified the impact here in Jammu and Kashmir,” Aggarwal stated.
The region, according to him, witnessed a decline across key segments, including two-wheelers, passenger vehicles, commercial vehicles and tractors.
One of the most significant factors this month (August) was the heavy and prolonged rainfall across several districts, which disrupted normal life, hampered dealership operations, and restricted customer movement.
Aggarwal said, “Looking ahead, we are cautiously optimistic that September will bring stronger momentum. 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.”
He said that, for auto retails, September would 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 would mirror upcoming GST reductions converge.
“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,” Aggarwal asserted.
