In January, automobile retail sales in India rose 7 per cent year-on-year at 22,91,621 units, data from the dealers body Federation Of Automobile Dealers Associations (FADA) said.

The growth was driven by the robust demand across segments, it added. As per the FADA data, the overall retail sales stood at 21,49,117 units in January.

Advertisement

The passenger vehicle retail sales jumped 16 per cent year-on-year to 4,65,920 units last month.

Further, Commercial vehicle sales rose 8 per cent year-on-year in January to 99,425 units.

The data said the tractor sales rose 5 per cent year-on-year to 93,381 units in January while three-wheeler retail sales rose 7 per cent to 1,07,033 units last month.

Two-wheeler retails stood at 15,25,862 units last month, an increase of 4 per cent, as compared with 14,65,039 units in the same month last year.

Sales in urban areas outpaced rural on a Y-o-Y basis, growing by 5 per cent compared to 4 per cent.

“Our observations indicate that each vehicle category — 2W, 3W, PV, tractor and CV — witnessed positive momentum, pointing toward sustained consumer confidence and steady market recovery,” FADA President C S Vigneshwar said in a statement.

Many dealers noted improved demand but also pointed to last year’s heavy discounting, which helped clear older models and shift registrations, Vigneshwar added.

Many dealers noted improved demand but also pointed to last year’s heavy discounting, which helped clear older models and shift registrations, he said.

The FADA president said dealers cite new model launches, marriage season demand, and improved financing as key growth drivers.

However, concerns about rising interest rates, rural liquidity challenges, and market uncertainty still linger, he added.

According to a latest survey, FADA said nearly half of dealers (46 per cent ) anticipate growth this month, while 43 per cent expect sales to stay flat and 11 per cent foresee a dip, the industry body said.

This blend of sentiments underscores the industry’s complex landscape, where bright spots are tempered by ongoing challenges, it stated.

On the positive side, dealers report that the continuing marriage season, fresh product launches, and strategic promotional activities are likely to sustain customer footfalls, it noted.

Furthermore, improved inventory management, better financing options from select lenders, and backlogged orders in certain segments add to the sense of guarded confidence, it added.