India's automobile retail sales rose 7% Year-On-Year (YoY) to 22,91,621 units in January 2025 from 21,49,117 units in January 2024, said dealer’s body Federation of Automobile Dealers Associations (Fada) on Thursday. The federation attributed the surge to "robust demand across segments." "Our observations indicate that each vehicle category –2W, 3W, PV, tractor and CV witnessed positive momentum, pointing toward sustained consumer confidence and steady market recovery," news agency, PTI quoted Fada president C S Vigneshwar as saying. PV sales up 16% YoY last month Passenger vehicle (PV) retail sales jumped 16% YoY to 4,65,920 units last month. Discount on older models raised sales: Fada president Vigneshwar also said that many dealers cited improved demand and last year’s heavy discounting behind the sale surge. Inventory level shows improvement According to Vigneshwar, inventory levels have also improved, dropping by around five days to 50-55 days. 2W retail sale at 15.25 lakh units in January 2025 Two-wheeler (2W) retails also shot up 4% to 15,25,862 units last month from 14,65,039 units in same month last year. Urban vs Rural areas Sales in urban areas outpaced rural on a Y-o-Y basis, growing by 5% compared to 4% in the latter. Other reasons behind the uptick Vigneshwar further added that dealers also cited new model launches, marriage season demand and improved financing as key growth drivers of the automobile industry. High RoI on auto loans remains a challenge: Fada president However, concerns about rising interest rates, rural liquidity challenges and market uncertainty still linger, he added. CV sales up 8% YoY to 99,425 units Commercial vehicle (CV) sales rose 8% YoY in January to 99,425 units. Tractor sales rose 5% annually to 93,381 units in January while three-wheeler (3W) retail sales rose 7% to 1,07,033 units last month. Bumpy road ahead Fada noted that albeit auto sales get a rousing start in the year 2025 but the road ahead might be bumpy.Original Article