Delayed Registrations Fuel a 15% Spike in India’s January 2025 Car Sales

India’s passenger vehicle sales saw a 15.53% increase in January 2025, largely due to delayed registrations from the previous month. According to data from the Federation of Automobile Dealers Associations (FADA), 4,65,920 cars were registered last month, compared to 2,93,465 units in January 2024. This also marks a 58.77% rise from December 2024.

Registrations Pushed to January

A portion of these sales figures comes from purchases made in December but registered in January. Many buyers delayed their registration to get a 2025 model year tag, which is often preferred for resale value. 

The heavy discounting in December also played a role, as dealerships cleared out older stock, leading to more formal registrations in the new year.

Inventory Levels 

Dealers reported that inventory levels dropped by about five days, bringing them down to 50-55 days. This suggests an improved balance between supply and demand, easing concerns about overstocking.

Apart from passenger vehicles, other segments of the automobile industry also saw growth in January:

• Two-wheeler sales rose 4.15% YoY to 15,25,862 units.
• Three-wheeler sales increased 6.86% YoY to 1,07,033 units.
• Commercial vehicle sales grew 8.22% YoY to 99,425 units.
• Tractor sales increased 5.23% YoY to 93,381 units.

Company-Wise Trends

Major automakers recorded varied performances. Some brands reported higher numbers, helped by new model launches and EV sales, while others saw a decline. Among two-wheeler manufacturers, sales showed a slight increase but remained stable overall.

Among automakers, Mahindra, Maruti Suzuki, Toyota, Hero MotoCorp, and TVS saw notable sales growth in January 2025. In contrast, Tata Motors recorded a decline in sales.

Meanwhile, Hyundai Creta achieved its highest-ever monthly sales, helped by the launch of the Creta EV, which contributed to the demand.

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