India auto retail posts best-ever February as sales jump 25.6% YoY

India’s auto retail market recorded its strongest February on record in 2026, with total registrations reaching 24,09,362 units, a 25.62 per cent year-on-year increase, according to the Federation of Automobile Dealers Associations (FADA).

Growth was seen across almost all segments, with two-wheelers, passenger vehicles, commercial vehicles, three-wheelers and tractors all posting their best-ever February retail numbers.

Two-wheelers continue to drive overall volumes

Two-wheelers remained the largest contributor to overall volumes. Retail sales reached 17,00,505 units, marking a 25.02 per cent increase compared to February last year. Growth was broad-based, with urban markets rising 28.96 per cent year-on-year while rural markets grew 22.16 per cent.

Passenger vehicle retail stood at 3,94,768 units, up 26.12 per cent year-on-year. Rural demand grew faster than urban markets, rising 34.21 per cent compared to 21.12 per cent in cities. SUVs continued to drive the segment, while improving rural demand also supported entry-level and small car sales.

Commercial vehicles and tractors see strong demand

Commercial vehicle retail reached 1,00,820 units, registering a 28.89 per cent year-on-year increase. According to dealer feedback, steady freight movement, growth in e-commerce logistics, and infrastructure activity supported demand during the month.

Three-wheeler sales totalled 1,17,130 units, up 24.39 per cent year-on-year.

The tractor segment recorded the fastest growth among all categories. Retail sales rose 36.35 per cent year-on-year to 89,418 units, reflecting strong rural demand.

Construction equipment was the only segment to post a decline. Retail sales stood at 6,721 units, down 1.22 per cent compared to February last year.

Inventory improves as dealers look ahead to March

FADA noted that February’s strong performance came despite the shorter month. The association also pointed to improving affordability and stronger market confidence following the implementation of GST 2.0, which has supported demand across segments.

Inventory levels in the passenger vehicle segment also improved during the month. Dealer stock reduced to around 27–29 days, moving closer to FADA’s recommended benchmark of 21 days and indicating better alignment between wholesale dispatches and retail demand.

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