The Indian retail automotive market witnessed a significant uptick in January, with sales soaring 17.61% year-over-year to 2,722,558 units. Two-wheelers and passenger cars drove this expansion, according to data released by FADA on Tuesday.
In the passenger vehicle segment, volumes rose 7.22% to 513,475 units. Urban areas dominated with a 59.2% share, but rural markets stole the spotlight, posting a 14.43% growth compared to a modest 2.75% in cities. This disparity highlights the vital role of rural consumers in sustaining market momentum.
‘Robust cash flows from crop harvests, GST cuts, and festive wedding periods have fortified demand for passenger and commercial vehicles in rural India,’ explained FADA President C S Vigneshwar. Feedback from dealers points to surging interest in premium models, amplified by seasonal events like Pongal.
Two-wheeler sales hit a high note at 1,852,870 units, up 20.82% from last year, with rural buyers making up about 56% of purchases. Commercial vehicle dispatches grew 15.07% to 107,486 units, split between light (65,505 units, +14%) and heavy (34,287 units, +14%) categories.
February’s market sentiment is buoyant, supported by macroeconomic tailwinds and ground-level optimism among dealers. Over 72% expect continued expansion, reflecting confidence in the sector’s steady climb.