New Delhi, Feb 10 (IANS) Overall vehicle retail market in India grew 17.61 per cent (year‑on‑year) with sales of 27,22,558 units in January, driven by strong demand in 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 in January, with urban markets accounting for about 59.2 per cent of sales volumes, the statement from FADA said.
Rural PV retail grew 14.43 per cent YoY compared with 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 harvest 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 shift towards higher-value models.
Rural volumes stayed robust, supported by Pongal or Makar Sankranti and marriage-season footfalls, it added.
Selective model-wise supply constraints and aggressive competitive discounting continue to shape the near-term retail playbook in a few pockets.
Two‑wheelers led the growth with 18,52,870 units sold, up 20.82 per cent YoY, and rural share in two‑wheelers around 56 per cent. Commercial vehicles clocked 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 up around 14 per cent, the statement added.
FADA said the sentiment in February is firmly constructive, backed by supportive macros and on-ground dealer confidence as 72.56 per cent of dealers expect growth and only 4.51 per cent expect de-growth.
The operating environment is being strengthened by a growth-oriented Budget with a clear infra–agri thrust, continued wedding/festival tailwinds. RBI rate stability on top of 2025’s easing—together improving affordability, financing comfort and purchase intent.
The industry body shared its outlook for next 3 months of broad-based growth, reinforced by structural expansion of demand beyond metros. Key enablers for the growth include ongoing affordability gains, rural cash flows, and product momentum.
—IANS
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