India’s overall vehicle retail market grew 17.61 per cent year-on-year to 27,22,558 units in January, driven by strong demand for two-wheelers and passenger vehicles, industry body Federation of Automobile Dealers Associations (FADA) said on Tuesday.
Passenger vehicle (PV) retail rose 7.22 per cent to 5,13,475 units during the month, with urban markets accounting for about 59.2 per cent of total volumes, according to a statement from FADA.
Rural PV retail grew 14.43 per cent year-on-year, significantly outpacing urban growth of 2.75 per cent, the industry body said.
“The growth was powered by continued post-GST momentum, healthy rural cash flows on the back of harvests and weddings, and sustained demand visibility across mobility and freight,” said CS Vigneshwar, President, FADA.
Dealer feedback highlighted strong enquiry momentum, sharper customer engagement, quicker digital follow-ups, and a shift towards higher-value models.
Rural volumes remained robust, supported by Pongal and Makar Sankranti celebrations, along with marriage-season footfalls, it added.
Selective model-wise supply constraints and aggressive competitive discounting continue to shape near-term retail strategies in a few pockets.
Two-wheelers led the growth, with sales of 18,52,870 units, up 20.82 per cent year-on-year, while rural markets accounted for around 56 per cent of two-wheeler volumes. Commercial vehicle retail stood at 1,07,486 units, up 15.07 per cent, with light commercial vehicles at 65,505 units and heavy commercial vehicles at 34,287 units, both recording growth of around 14 per cent, the statement said.
FADA said sentiment for February remains firmly constructive, backed by supportive macroeconomic conditions and on-ground dealer confidence, with 72.56 per cent of dealers expecting growth and only 4.51 per cent anticipating de-growth.
The operating environment is being strengthened by a growth-oriented Budget with a clear infrastructure and agriculture thrust, continued wedding and festival tailwinds, and RBI rate stability following easing in 2025, together improving affordability, financing comfort, and purchase intent.
The industry body projected broad-based growth over the next three months, reinforced by the structural expansion of demand beyond metro markets. Key drivers include sustained affordability gains, healthy rural cash flows, and strong product momentum.
— IANS
