More Stories

Informist, Tuesday, Feb. 10, 2026

 

Please click here to read all liners published on this story

--FADA: Jan total vehicle retail sales 2.72 mln units, up 17.6% on year 
--FADA: Jan passenger vehicle retail sales 513,475 units, up 7.2% on yr 
--FADA: Jan 2-wheeler retail sales 1.85 mln units, up 20.8% on yr 
--FADA: Jan CV retail sales 107,486 units, up 15.1% on year 
--FADA: Jan 3-wheeler retail sales 127,134 units, up 18.8% on year 
--FADA: Jan tractors retail sales 114,759 units, up 22.9% on year 
--FADA: CV outlook for Jan-Mar favourable supported by infra project gearing 
--FADA: PV sales seen strong in Feb-Mar on booking pipeline strength

 

MUMBAI – Retails sales of automobiles continued to grow at a robust pace in January, supported by the lower goods and services tax rates and higher rural demand. Data released by the Federation of Automobile Dealers Associations Tuesday showed dealerships across India sold 2.72 million automobile units in January, up 17.6% on year and 34% on month. 

 

Two-wheelers led the rise in automobile sales in January, growing 20.8% on year to 1.85 million units. Passenger vehicle retail sales lagged behind at 513,475 units, up only 7.2% on year. 

 

"The growth was powered by continued post-GST momentum, healthy rural cashflows on the back of harvest and weddings, and sustained demand visibility across mobility and freight," FADA President C.S. Vigneshwar was quoted as saying in a press release. "Dealer feedback points to strong enquiry momentum driven by sharper customer engagement, quicker digital follow-ups, and a visible shift towards higher-value and mid-powered motorcycles."

 

Passenger vehicles are increasingly seeing higher sales in non-metro cities, while sales in rural areas have grown at a much quicker pace than urban areas. "This reinforces the structural expansion of PV (passenger vehicle) demand beyond the top cities, aided by a strong SUV (sport utility vehicle)/compact-SUV preference, revival of entry level cars, product availability and continued schemes," FADA said. 

 

Passenger vehicles' inventory levels fell to 32–34 days, a constructive indicator of healthier channel discipline and improved working-capital efficiency across the network, the industry body said. 

 

The two-wheelers category is expected to see continued momentum with improved enquiries, wedding-led mobility purchases, rural liquidity from crops, and growing acceptance of electric vehicle models, FADA said. "However, upside will be capped where stock/variant availability remains tight; net-net, outlook is growth to stable, with rural momentum still a key pillar."

Commercial vehicles' retail sales grew 15.1% on year and 28% on month to 107,486 units in January, with robust performance registered across categories. The rise in commercial vehicle sales reflected improving freight sentiment and replacement-led buying, FADA said.

 

Sentiment for commercial vehicles remains favourable for the March quarter on the back of infrastructure activity, freight and event-driven goods movement, and year-end purchase decisions, FADA said. 

 

Tractor sales grew 22.9% on year to 114,759 units last month. Retail sales of three-wheelers rose 18.8% on year to 127,134 units in January with electric rickshaws, both passenger and goods carriers, registering robust on-year growth.

 

In Apr-Jan, retail sales of automobiles grew 10.9% on year to 24.53 million units, with all segments rising around 10%, except construction equipment, whose sales fell 13%. 

 

OUTLOOK

The sentiment for automobile retail sales in February is firmly constructive, backed by supportive macros and on-ground dealer confidence, with 72.56?alers expecting growth and only 4.51% expecting a fall, FADA said. "The operating environment is being strengthened by a growth-oriented Budget with a clear infra–agri thrust, continued wedding/festival tailwinds, and RBI (Reserve Bank of India) rate stability on top of 2025's easing--together improving affordability, financing comfort and purchase intent," FADA said. 

 

Over the next three months, dealer confidence remains decisively constructive. Around 80% of dealers surveyed by FADA expect growth and around 2% indicated de-growth. On-ground feedback also points to stronger enquiry pipelines, tighter follow-ups, and local marketing intensity translating into higher conversion potential, FADA said.  End

 

Reported by Shubham Rana

Edited by Tanima Banerjee

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.