New Delhi, Feb. 7 -- Automobile retail sales in India grew 7% year-on-year in January, reaching 22.9 lakh units, driven by strong demand across all segments, according to the Federation of Automobile Dealers Associations (FADA).

"Each vehicle category-two-wheelers, three-wheelers, passenger vehicles, tractors, and commercial vehicles-witnessed positive momentum, reflecting sustained consumer confidence and steady market recovery," said FADA president C S Vigneshwar was quoted as saying by the Times of India.

Passenger vehicle sales saw a sharp 16% year-on-year jump to 4.6 lakh units last month.

While demand remained strong, dealers noted that last year's heavy discounting had played a role in clearing older inventory.

Inventory levels...