Indian automobile retail sales, as denoted by new registrations, have been estimated at 2.29 million units in January 2025, a rise of seven percent year on year, according to a statement released by the Federation of Automobile Dealers’ Association (FADA) on Friday, February 7.
“Our observations indicate that each vehicle category - two-wheelers, three-wheelers, passenger vehicles, tractors and commercial vehicles - witnessed positive momentum, pointing toward sustained consumer confidence and a steady market recovery,” FADA president C S Vigneshwar said in the statement.
Inventory levels have improved, dropping by around five days to 50-55 days, suggesting an improved supply-demand balance, he added.
Passenger vehicle retail sales in January totaled 465,920 units, a rise of 16 percent year on year.
Two-wheeler retail sales amounted to 15,25,862 units in January this year, an increase of four percent compared to 14,65,039 units in the same month last year. Commercial vehicle sales rose by eight percent year on year in January to 99,425 units.
Improved inventory management, better financing options from select lenders and backlogged orders in certain segments add to the sense of guarded confidence, FADA said.