The Federation of Automobile Dealers Associations (FADA) released the vehicle retail data for January 2025, highlighting an overall year-on-year (YoY) growth of 13%. The surge was primarily driven by the two-wheeler segment, which witnessed a strong 15% increase in sales.
According to FADA, total vehicle sales for the month stood at 22,57,524 units, compared to 19,94,300 units in January 2024. While all major categories reported positive growth, the commercial vehicle (CV) segment showed moderate progress with a 2% increase, indicating a mixed recovery in the logistics and infrastructure sectors.
Segment-Wise Performance:
- Two-Wheelers: A robust 15% YoY growth, totaling 15,42,011 units. This surge is attributed to increased demand in rural areas and rising consumer confidence.
- Three-Wheelers: A 23% YoY rise with 96,583 units sold, driven by growing adoption of electric three-wheelers.
- Passenger Vehicles (PV): Up by 5% to 3,73,566 units, reflecting steady consumer sentiment despite global supply chain challenges.
- Commercial Vehicles (CV): Modest growth of 2% with 89,208 units, showing gradual recovery in economic activity.
- Tractors: The only segment with a slight decline of 1% (1,56,156 units), attributed to seasonal factors and fluctuating rural demand.
EV Market Gains Momentum:
The electric vehicle (EV) segment continued its upward trajectory, particularly in the two-wheeler and three-wheeler categories, as favorable policies and growing charging infrastructure encouraged adoption.
FADA’s Outlook for 2025:
FADA President Manish Raj Singhania expressed optimism for the coming months, citing improving economic conditions and a strong consumer sentiment post-festive season. However, he cautioned about potential headwinds, including fluctuating fuel prices and interest rate hikes.
As the auto industry enters the final quarter of the fiscal year, stakeholders remain hopeful for sustained growth, backed by policy support and evolving market trends.
