India records highest-ever automobile retail sales in February
What's the story
India's automobile retail sales hit a record high in February 2026, with a year-on-year (YoY) growth of 25.62% to reach 24,09,362 units. The data was released by the Federation of Automobile Dealers Associations (FADA) on Thursday. The impressive performance was witnessed across almost all segments except for Construction Equipment (CE).
Segment performance
Two-wheelers, PVs, and CVs drive sales surge
Two-wheelers led the sales surge with 17,00,505 units sold, marking a 25.02% YoY increase. Passenger vehicles (PVs) also witnessed a significant jump in sales at 3,94,768 units—a 26.12% increase over last year. Commercial vehicles (CVs) saw an even bigger jump of nearly 29% YoY to reach 1,00,820 units sold in February alone.
Additional segments
Three-wheeler and tractor segments also witness healthy growth
The three-wheeler segment also saw a healthy growth with retail sales of 1,17,130 units—up by 24.39% YoY. The tractor segment grew even more impressively at a rate of 36.35%, reaching sales of 89,418 units in February alone. However, the CE segment witnessed a slight decline in sales at 6,721 units—a drop of 1.22%.
Market analysis
FADA highlights post-GST momentum and improved market confidence
FADA noted that the strong performance of the auto sector is a continuation of the post-GST 2.0 momentum, with better affordability and market confidence driving retail sales. It also observed that despite February being a shorter month, retail performance remained exceptionally strong across segments. The association further revealed that PV inventory has reduced to 27-29 days, closer to its recommended 21-day benchmark—indicating healthier wholesale-retail alignment.
Future outlook
FADA president optimistic about continued demand in coming months
FADA president C S Vigneshwar said February 2026 has been a landmark month for the Indian auto retail sector, further strengthening the positive momentum seen after GST 2.0 announcement. He observed that growth was broad-based across almost all segments. Looking ahead, Vigneshwar expects demand to be supported by various festivals and financial year-end buying cycle which traditionally boosts vehicle purchases across segments.