Auto retail sales up 7% in January: FADA

NEW DELHI: Automobile retail sales rose 7% year-on-year in Jan to 22.9 lakh units, driven by robust demand across segments, dealer body Federation of Automobile Dealers Associations (FADA) said.

"Our observations indicate that each vehicle category - 2-wheeler, 3-wheeler, passenger vehicles, tractor and commercial vehicles - witnessed positive momentum, pointing towards sustained consumer confidence and steady market recovery," FADA president C S Vigneshwar said.

Passenger vehicle retail sales jumped 16% year-on-year to 4.6 lakh units last month. Many dealers spoke about improved demand but also pointed to last year's heavy discounting, which helped clear older models.

Inventory levels have improved, dropping by around five days to 50-55 days, suggesting improved supply-demand balance. Two-wheeler retails stood at 15.2 lakh units last month, rise of 4%against 14.6 lakh units in same month last year.