Auto Sales up 6.6% in January; Expectation Among Dealers Remain Mixed

Clocking a strong start to 2025, automobile sales in the country surged by 6.6% year-on-year (YoY) in January, a report by the Federation of Automobile Dealers Associations (FADA) stated.

Despite strong numbers, expectations remain mixed among auto dealers for the coming months. Close to 46% anticipate further growth in sales, while 43% believe that sales will remain steady. However, 11% of the dealers estimate a decline considering the auto industry’s complex landscape.

FADA says "Riding on the momentum of a promising start to 2025, the Auto Retail sector enters February with cautious optimism. According to our latest survey, nearly half of dealers (46 per cent) anticipate growth in the coming month, while 43 per cent expect sales to stay flat and 11% foresee a dip".

While two-wheeler sales soared by 4.15% YoY, buoyed by new model launches, wedding season demand, and improved financing options, sales in three-wheelers surged by 6.8% YoY.

In the commercial vehicle space, sales were up by 8.2% YoY, buoyed by surging freight rates and strong demand for passenger carriers. Tractor sales were also up by 5% YoY, highlighting stable demand in rural areas.

Passenger vehicle sales in urban areas surged from 60.8% to 61.8% whereas in rural areas, sales soared by 18.57% YoY compared to 13.72% in urban markets.