India’s automobile retail sector recorded its highest-ever February sales, reaching 2.41 million units in February 2026, according to data released by the Federation of Automobile Dealers Associations (FADA). The figure represents a strong 26 per cent year-on-year growth, reflecting rising consumer demand and renewed market confidence following the GST 2.0 announcement.
The latest numbers surpass the previous February record of 2.04 million units set in 2024. Despite being a shorter month, five of the six vehicle categories—two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, and tractors—achieved their highest February retail volumes. Only the construction equipment segment recorded a slight decline of 1.22 percent year-on-year.
Passenger vehicle (PV) sales stood at 394,768 units during the month, registering a 26 percent rise compared to February 2025. Demand remained strong across markets, with urban areas growing by 21 per cent while rural markets saw a sharper 34 per cent increase, highlighting expanding demand beyond metropolitan regions.
Among automakers, Maruti Suzuki maintained its top position with sales of 154,095 units, up 28 per cent year-on-year. Tata Motors secured the second spot with 56,447 units, posting a strong 43 per cent growth, followed by Mahindra & Mahindra with 53,281 units, marking a 25 per cent increase. Hyundai Motor ranked fourth, selling 45,615 units, up 16 percent from the previous year.
Two-wheeler retail sales also remained robust, reaching 1.7 million units in February, reflecting a 25 percent year-on-year rise. Growth was broad-based, with urban markets expanding by 29 per cent and rural markets by 22 per cent. Dealers attributed the momentum to improved rural liquidity after good crop outcomes, attractive promotional schemes, and better affordability following GST revisions.
In the commercial vehicle segment, retail sales stood at 100,820 units, registering a strong 29 percent growth compared to last year. Increased freight movement, steady e-commerce activity, and infrastructure-related demand supported fleet purchases across regions.
FADA President C S Vigneshwar said the strong performance indicates that policy-driven confidence, especially after GST 2.0, is translating into sustained demand across multiple vehicle segments. He also noted that passenger vehicle inventory levels have reduced to 27–29 days, signaling a healthier market outlook.
