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.
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"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.
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