New Delhi, Feb 10 (NationPress) The overall vehicle retail sector in India witnessed a remarkable growth of 17.61% (year-on-year), with a total of 27,22,558 units sold in January, as reported by the Federation of Automobile Dealers Associations (FADA) on Tuesday. This surge was primarily driven by robust demand for two-wheelers and passenger vehicles.

Sales of passenger vehicles (PV) increased by 7.22% to 5,13,475 units in January, with urban markets contributing approximately 59.2% of the total sales volume, according to FADA's statement.

In contrast, rural PV sales experienced a significant growth of 14.43% year-on-year, compared to a modest urban growth of 2.75%, as highlighted by the industry body.

CS Vigneshwar, President of FADA, noted, “The growth was fueled by ongoing post-GST momentum, healthy rural cash flows driven by harvest activities and weddings, alongside sustained demand visibility across mobility and freight.”

Feedback from dealers indicated a surge in customer inquiries, improved engagement levels, prompt digital follow-ups, and a shift toward higher-value models.

The strong rural demand was supported by celebrations like Pongal and Makar Sankranti as well as wedding season footfalls.

However, selective model-wise supply constraints and competitive discounting continue to influence the near-term retail landscape in certain areas.

Two-wheelers led the sales growth, with 18,52,870 units sold, reflecting a year-on-year increase of 20.82%. Rural markets accounted for approximately 56% of two-wheeler sales. Commercial vehicles saw sales of 1,07,486 units, up by 15.07%, including light commercial vehicles at 65,505 units and heavy commercial vehicles at 34,287 units, both showing a growth of around 14%.

FADA expressed a positive sentiment for February, bolstered by favorable macroeconomic factors and dealer confidence, with 72.56% of dealers anticipating growth while only 4.51% foresee a decline.

The operating environment is being enhanced by a growth-focused budget emphasizing infrastructure and agriculture, combined with ongoing wedding and festival momentum. The stability in RBI rates, coupled with easing trends expected in 2025, is improving affordability, financing comfort, and purchase intentions.

FADA also shared an optimistic outlook for the next three months, predicting broad-based growth driven by structural demand expansion beyond metropolitan areas. Key growth enablers include ongoing affordability improvements, rural cash inflows, and product momentum.

aar/na