Wholesale sales of motor vehicles rose 17.2% in January

Wholesale passenger car sales reached 298,093 units.

The passenger vehicle (PV) is off to a rather optimistic start to 2023, with strong January sales. This follows record sales for the segment in the calendar year (CY) 2022. Analysts believe that demand for cars in the country will remain strong in the coming months, leading to better sales.

Wholesale passenger vehicle sales in India rose 17.2% in January on strong demand for commercial vehicles (UVs) and improved consumer sentiment, the Society of Indian Automobile Manufacturers said (SIAM) on January 13.

Wholesale passenger car sales reached 298,093 units from 254,287 a year earlier, a record for January, according to SIAM data.

In early February, the Federation of Automobile Dealers Associations (FADA) said passenger vehicle sales rose 22% in January, adding that reopening factories in China would help improve supply.

Among other things, data from SIAM showed that sales of the now popular and more expensive UV rose around 28%, still more than passenger car sales in January.

“Better consumer sentiment is driving demand for passenger vehicles,” SIAM President Vinod Aggarwal said.

Meanwhile, two-wheeler sales rose just 3.8% for the month, compared to a 6.3% increase during the October-December holiday season.

“The rate of growth of two-wheelers in the recent year has not kept pace with the growth in the other segments,” Aggarwal said.