India’s retail vehicle sector started the year on a high, recording 2,722,558 units sold in January—a 17.61% jump year-on-year. The Federation of Automobile Dealers Associations (FADA) pointed to robust two-wheeler and passenger vehicle demand as the growth engines.
Sales of passenger vehicles increased 7.22% to 513,475 units, where urban centers claimed 59.2%. Yet, rural demand outshone with 14.43% growth, dwarfing urban gains of 2.75%. This trend signals deepening market penetration beyond metros.
According to FADA President C S Vigneshwar, ‘Rural cash surplus from farming, tax incentives, and wedding festivities are driving premium model preferences.’ Dealer insights reveal brisk queries, boosted by Pongal celebrations.
Two-wheelers topped with 1,852,870 units (up 20.82%), rural share at 56%. Commercial vehicles rose 15.07% to 107,486 units, featuring 65,505 light and 34,287 heavy vehicles—each up 14%.
Optimism prevails for February, underpinned by strong macros and dealer surveys: 72.56% predict rises, only 4.51% foresee falls. India’s auto market is gearing up for an eventful year.