Auto Retail Sales Surge 26% in February Amid Strong Demand
FADA reports record sales across major vehicle segments, led by two-wheelers and tractors
NEW DELHI: Automobile retail sales in India surged nearly 26% in February 2026, reaching a record 19.1 lakh units, according to data from the Federation of Automobile Dealers Associations (FADA).
Five of the six major vehicle segments including two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, and tractors recorded their highest ever February sales, while construction equipment saw a slight 1.2% decline.
FADA president CS Vigneshwar called February a landmark month for the sector, attributing the strong performance to policy led market confidence, particularly after GST 2.0, translating into sustained demand across multiple segments.
Two-wheelers remained the largest segment, with retail sales of about 17 lakh units, up 25% from 13.6 lakh units last year, showing growth in both urban and rural markets. Passenger vehicle sales hit a record 4 lakh units, up 26% from 3.1 lakh units, driven by rural markets growing over 34% compared with 21% in urban areas, with SUVs leading demand.
Commercial vehicle sales rose 29% to 1 lakh units, supported by infrastructure activity and logistics growth, while tractors saw the fastest growth, climbing 36% to 89,418 units, reflecting strong rural demand.
Looking ahead, FADA said dealers remain optimistic about March sales, supported by festivals, financial year end purchases, improved rural income following good crop outcomes, and better affordability post-GST revisions.
