The vehicle retail market in India saw a significant growth of 17.61% year-on-year in January, with a total of 27,22,558 units sold. Passenger vehicle retail increased by 7.22% to 5,13,475 units during the same period, with urban markets contributing to 59.2% of the sales volumes. Rural passenger vehicle retail also showed a strong growth of 14.43% compared to urban growth of 2.75%.
“The growth was driven by factors such as post-GST momentum, healthy rural cash flows from harvest and weddings, and sustained demand visibility in mobility and freight,” stated CS Vigneshwar, President of FADA. Dealer feedback indicated a rise in enquiry momentum, enhanced customer engagement, digital follow-ups, and a shift towards higher-value models.
Two-wheelers led the growth with 18,52,870 units sold, marking a 20.82% increase year-on-year, with rural areas accounting for around 56% of the sales. Commercial vehicles also performed well, with a total of 1,07,486 units sold, showing a 15.07% growth. Light commercial vehicles reached 65,505 units, and heavy commercial vehicles stood at 34,287 units, both showing an increase of around 14%.
FADA expressed positive sentiment for February, with 72.56% of dealers expecting growth and only 4.51% anticipating de-growth. The industry outlook for the next three months foresees broad-based growth, supported by factors like affordability gains, rural cash flows, and product momentum.
