Passenger Vehicle Sales Hit Record High In January On New Launches

Passenger vehicle sales rose 13% to 3.93 lakh units in January, according to Federation of Automobile Dealers Associations data.

<div class="paragraphs"><p>(Source: <a href=";utm_medium=referral&amp;utm_source=unsplash">Jacek Dylag</a> on <a href=";utm_medium=referral&amp;utm_source=unsplash">Unsplash</a>)</p></div>
(Source: Jacek Dylag on Unsplash)

Retail sales of passenger vehicles hit a record high in January, helped by continued strong growth in the SUV segment, new launches and the auspicious wedding season.

Passenger vehicle sales rose 13% to 3.93 lakh units in January, according to data released by the Federation of Automobile Dealers Associations.

"Despite this achievement, serious concerns remain regarding PV inventory levels, now in the 50–55 day range," said Manish Raj Singhania, president of FADA, in a statement. "This calls for immediate recalibration of production from OEMs to better align with actual market demand and avoid future oversupply issues."

Recovery in the two-wheeler segment also maintained momentum, with sales growth of 15% to 14.59 lakh units in January.

Improved vehicle availability, combined with a good harvest and a positive marriage season, indicate a favourable trajectory for the two-wheeler sector, FADA said.

The commercial vehicle segment witnessed a modest month as sales were affected by tightening liquidity, extreme weather, restricted financing and high vehicle costs, the dealers' body said.

Three-wheeler sales rose in the month with higher competition from makers of electric variants.

January Auto Retail Sales (YoY)

  • Passenger vehicle sales grew 13% to 3,93,250 units.

  • Two-wheeler sales rose 15% to 14.59 lakh units.

  • Three-wheeler sales jumped 37% to 97,675 units.

  • Tractor sales rose 21% to 88,671 units.

  • Commercial vehicle sales were up 0.1% to 89,208 units.

The ongoing marriage season and higher agricultural income due to optimistic production estimates will support sales of tractors and entry-level two-wheelers in rural areas in the coming months, according to the apex body for automobile dealers.

However, persistent supply issues for specific high-demand models across categories may limit sales growth, it said.