January brought cheering news for India’s automobile dealers as retail sales across all vehicle categories surged 17.61% to 2,722,558 units compared to the previous year. FADA’s latest report credits the growth to heightened appetite for two-wheelers and passenger vehicles.
Passenger vehicle retail reached 513,475 units, a 7.22% increase. While cities held 59.2% of the pie, rural sales skyrocketed by 14.43% versus a tame 2.75% urban rise. This rural revival is painting a promising picture for inclusive economic growth.
FADA chief C S Vigneshwar highlighted key drivers: ‘GST relief, harvest inflows, and marriage seasons have created strong liquidity, spurring inquiries for upscale vehicles.’ Regional festivals including Makar Sankranti have kept rural sales firing on all cylinders.
Dominating the charts, two-wheelers sold 1,852,870 units—a 20.82% leap—with rural areas contributing 56%. Commercial vehicles advanced 15.07% to 107,486 units: light CVs at 65,505 (+14%) and heavy CVs at 34,287 (+14%).
Dealers are upbeat about February, with favorable economics and 72.56% forecasting growth against a mere 4.51% bracing for decline. The sector’s positive vibe sets the stage for sustained prosperity.