India's auto retail sales rise 18% in January; dealers optimistic about Feb-Mar growth
- IBEF
- February 11, 2026
In January 2026, the retail automobile market in India saw a strong year-on-year increase of almost 18%, totalling 27,22,558 vehicle registrations according to data provided by FADA (Federation of Automobile Dealers Association). This growth was supported by strong post-GST sales, as well as healthy cash flows in rural areas after the harvest and significant wedding savings. Two-wheeler registrations represented the largest segment, growing 21% to 18,52,870 registrations, while three-wheeled vehicles and commercial vehicle registrations were also up by 19% and 15%, respectively. The number of tractor registrations was also up significantly, reporting a 23% increase due to improvements in both rural and urban areas, thus reflecting a broader-based recovery.
Retail sales of passenger vehicles defy initial doubts to reflect 7% increase from prior year for a total of 513,475 units; continued structural expansion into non-metro areas and rural passenger vehicle sales soared over 14% from year ago. According to, President of FADA, Mr. C.S. Vigneshwar, the success of the passenger vehicle segment can be attributed to an increased preference for SUVs, the revival of entry-level vehicles, and various attractive manufacturer offers. Looking forward, dealers continue to have significant optimism about the Period of February-March, supported by a growth-oriented budget for 2026, infrastructure focus, and interest rate stability; Approximately 80% of dealers anticipate continued growth moving forward. The industry should experience a strong end to the fiscal year, bolstered by a continued healthy enquiry pipeline and year-end financial buying.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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