Driven by a stellar show in the rural market, passenger vehicle retail sales for the month of January zoomed 7.22 per cent to 513,475 units versus the same month last year, data shared by the Federation of Automobile Dealers Associations (Fada) on Tuesday showed.
Overall automobile retail sales (including passenger vehicles) too increased by 17.6 per cent to 2.72 million units. The growth was powered by continued post-GST momentum, healthy rural cash flow on the back of harvests and weddings, and sustained demand visibility across mobility and freight.
Though the passenger vehicle mix still remains urban-led at 59.2 per cent, with rural at 40.8 per cent, the rural market posted a growth of 14.4 per cent during the month versus 2.75 per cent in the urban market. Interestingly, in a sign of increased competition for the number two slot, Hyundai Motor became the second-largest carmaker after several months with a market share of 12.84 per cent (65,914 units), followed closely by Tata Motors with 12.38 per cent (63,558 units), and Mahindra & Mahindra at 12.34 per cent (63,366 units). Maruti Suzuki continued to be the number one player with a 42 per cent market share and sales of 216,043 units, up marginally from 214,494 units in January 2025.
“This reinforces the structural expansion of passenger vehicle demand beyond the top cities, aided by a strong SUV and compact SUV preference, revival of entry-level cars, product availability and continued schemes. Crucially, passenger vehicle inventory levels continued to soften to 32–34 days, which is a constructive indicator of healthier channel discipline and improved working capital efficiency across the network,” said C S Vigneshwar, president, Fada.
During the month, two-wheelers led the charge with sales of 1.85 million units (up 20.82 per cent year-on-year). Importantly, the demand engine of two-wheelers remains anchored in Bharat, with the rural share at 56 per cent versus 44 per cent in urban areas. “While rural volumes stayed robust with a 19.77 per cent growth year-on-year, supported by Pongal, Makar Sankranti, marriage-season footfalls and better affordability, we are also seeing a clear revival in urban markets, which grew 22.19 per cent — a healthy signal of demand normalisation beyond festive-only buying,” Vigneshwar said. 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, Fada said.
Commercial vehicles clocked 107,486 units (up 15.07 per cent), reflecting improving freight sentiment and replacement-led buying. The uptrend was visible across tonnage bands, with light commercial vehicles at 65,505 units (up 14.94 per cent) and heavy commercial vehicles at 34,287 units (up 14.61 per cent), aligning with dealer feedback around stronger goods movement, infrastructure activity and renewed confidence among single-owner operators.
Three-wheelers remained resilient, posting a growth of 18.80 per cent. On the other hand, construction equipment continued to remain under pressure, declining 21.09 per cent in January, indicating a high-base impact and segment-specific recalibration.
“Passenger vehicles should see steady traction driven by a strong booking pipeline, new launch and variant excitement and continued GST-led affordability, with incremental support from rural demand during the marriage season. Nonetheless, a high base and allocation or production constraints could make growth more measured, alongside ongoing focus on VIN-wise inventory clean-up,” Vigneshwar said.