New Delhi, February 13 Domestic passenger vehicle dispatches from manufacturers to dealers increased by 13 percent year-on-year to 4,49,616 units in January, with demand remaining strong due to rationalization of GST rates and subsequent price reductions, the industry body SIAM said on Friday.
Overall passenger vehicle dispatches stood at 3,99,386 units in January 2025.
The sales growth last month was driven by utility vehicles.
The wholesale sales of this segment increased to 2,46,844 units last month, compared to 2,12,995 units in the previous year, a growth of 16 percent.
Similarly, van sales rose to 11,914 units in January, compared to 11,250 units in the same month last year.
However, passenger car dispatches declined by 5 percent year-on-year to 1,20,636 units in January.
Maruti Suzuki led the segment in January with a dispatch of 1,74,529 units. The auto major sold 1,73,599 units in the previous year.
Two-wheeler sales rose by 26 percent to 19,25,603 units last month, compared to 15,26,218 units in January last year, the Society of Indian Automobile Manufacturers (SIAM) said in a statement.
Scooter dispatches increased by 37 percent year-on-year to 7,50,580 units, while motorcycle wholesale sales rose by 20 percent year-on-year to 11,26,416 units in January. Three-wheeler dispatches to dealers increased by 30 percent year-on-year to 75,725 units, compared to 58,167 units in the previous year, it added.
"Passenger vehicles, two-wheelers, and three-wheelers posted their highest-ever January sales in 2025, with double-digit growth, compared to January 2024," SIAM Director General Rajesh Menon stated.
The new year has begun on a positive note, extending the strong momentum seen in the previous quarter, supported by sustained demand following the GST rate reduction, he added.
The initiatives announced in the Union Budget 2025 to strengthen India's manufacturing base, along with existing policy support, are expected to deliver long-term benefits for the sector and support growth in the medium term, Menon added.
The GST Council approved limiting rates to 5 percent and 18 percent, effective from September 22 last year, the first day of Navaratri.
Under this, petrol, LPG, and CNG vehicles with engine capacities less than 1,200 cc and lengths not exceeding 4,000 mm, as well as diesel vehicles with engine capacities up to 1,500 cc and lengths of up to 4,000 mm, have now been moved to the 18 percent rate.
Previously, these two categories were subject to 28 percent GST with a 1 percent compensation cess, and 28 percent GST with a 3 percent compensation cess, respectively.
The GST rate rationalization led to manufacturers reducing vehicle prices. The price cuts resulted in record sales during the subsequent festive period, and this sales momentum has continued into the new year.