Auto sales up 18% in Jan on strong rural demand
New Delhi: Vehicle registrations, a proxy for retail sales, increased 18% from a year earlier in January to 2.72 million units thanks to sustained demand after tax cuts last year and improved cash flows in rural markets.Passenger vehicle sales rose by 7.2% to cross the half million mark in registrations last month, two-wheeler and commercial vehicle registrations grew by 21% and 15%, respectively, showed data collated by the Federation of Automobile Dealers Association (Fada) from the government's Vahan portal. Tractor sales rose 23% in January. Demand for construction equipment though continued to remain under pressure, declining by 21% on a high base.Auto sales had remained modest for most of calendar 2025, prior to the cuts in goods and services tax (GST) with effect from September 22. This led to a drop in vehicle prices, sparking a sales spurt.128172478 "January has delivered a strong, broad-based start to the calendar year," said CS Vigneshwar, president, Fada. ...