India’s automobile retail market kicked off 2026 on a high note, registering 27.23 lakh vehicle sales in January, up 17.61% year-on-year and 34% month-on-month, driven by robust rural recovery and festive momentum. Passenger vehicles grew 7% YoY to 5.13 lakh units, while two-wheelers leaped 21% amid healthy cash flows from harvests and weddings.
Two-Wheelers Lead the Charge
Two-wheeler sales dominated at over 20 lakh units, powered by rural markets accounting for 56% of volume. Hero MotoCorp and Honda led, capitalizing on entry-level demand and premium upgrades. This segment’s double-digit growth signals broad-based recovery beyond urban metros.
Passenger Vehicles Show Steady Gains
Passenger vehicle retail hit 5.13 lakh units (+7.22% YoY), with rural sales jumping 14% versus modest urban gains. Maruti Suzuki topped charts at 2.16 lakh units (42% share), followed by Hyundai (65,914 units) and Tata Motors (63,558 units). Inventory eased to 32-34 days, easing pricing pressure.
Commercial Vehicles Rebound
CV sales reached 1.07 lakh units (+15% YoY), reflecting freight recovery. Tata Motors commanded 34% share (36,571 units), with Mahindra close behind (31,884 units).
Rural Engine Powers Growth
FADA President C.S. Vigneshwar credited post-GST tailwinds, rural prosperity, and sustained mobility/freight demand. Urban-rural splits highlight maturing market dynamics, with passenger vehicles 59% urban-led versus two-wheelers’ rural tilt. January’s performance sets an optimistic tone for FY26 amid moderating inflation and steady capex.
