The Federation of Automobile Dealers Associations (FADA) reported a strong performance for India's auto retail sector in February 2026. Total vehicle retail sales reached 24.09 lakh units, reflecting a 25.62% year-on-year (YoY) increase, even though the month had fewer days. The growth follows improved market sentiment after the GST 2.0 announcement and was visible across most vehicle categories.

Two-Wheelers led overall volumes with 17,00,505 units sold, registering 25.02% YoY growth. Demand remained healthy in both urban markets (+28.96%) and rural areas (+22.16%), supported by improved rural cash flows, promotional offers and seasonal buying during the wedding period.

Passenger Vehicles (PV) recorded 3,94,768 units in retail sales, rising 26.12% YoY. Rural markets grew 34.21%, faster than urban markets at 21.12%, indicating stronger demand beyond metro cities. PV inventory levels also improved to 27'29 days, moving closer to the industry's preferred range.

Commercial Vehicles (CV) posted 1,00,820 units, up 28.89% YoY, helped by steady freight activity, infrastructure projects and fleet additions linked to e-commerce demand.

Other segments also performed strongly, with Three-Wheelers growing 24.39% YoY and Tractors expanding 36.35% YoY, the fastest among all categories. Construction Equipment was the only segment to decline, slipping 1.22% YoY.

Overall, five of the six segments recorded their highest February retail volumes, highlighting robust demand across India's automobile market.

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