January, the retail sales of automobiles witnessed a 15 per cent rise to 2.13 million units, compared to 1.85 million units during the corresponding period in 2023, data shared by the Federation of Automobile Dealers Associations (FADA) said on Tuesday.

This growth was observed across all vehicle categories, including two-wheelers, three-wheelers, passenger vehicles, tractors, and commercial vehicles, which reported increases of 15 per cent, 37 per cent , 13 per cent , 21 per cent , and 0.1 per cent respectively.

As per the data, for January, the PV segment achieved an all-time high in retail sales of 393,250 units, a 13 per cent increase from 347,086 units in January last year. It also surpassed the previous record of November.

The strong performance was supported by SUV demand, the introduction of new models, greater availability, effective marketing, consumer schemes, and the auspicious wedding season, it added.

“This calls for immediate recalibration of production from original equipment manufacturers to better align with actual market demand and prevent future oversupply issues. In this dynamic industry, adaptability is crucial. Original equipment manufacturers (OEMs) must balance innovation with strategic production planning to ensure sustained success and overall market stability,” said FADA president Manish Raj Singhania.

The report stated that the two-wheeler market began in the year positively, with improved vehicle availability following adjustments post-Onboard Diagnostic 2 (OBD 2) norm implementation, the introduction of new models, and a shift towards premium options, all contributing to increased demand.

This, coupled with a good harvest, a positive marriage season, and effective follow-ups and offers, suggests a favourable outlook for the two-wheeler sector. Two-wheeler sales reached 1.46 million units, up from 1.27 million units in the same month the previous year.

January 2024 also depicted a complex scenario for the commercial vehicle (CV) segment, showing limited year-on-year growth.

“On one hand, increased infrastructure development, port activity, and positive crop yields boosted certain market segments. However, this momentum was offset by extreme weather conditions, tightened liquidity, high vehicle costs, and more restricted financing options,” Singhania noted.

Retail sales in the CV sector were 89,208 units during the month, slightly up from 89,106 units the previous year.