TL;DR
India's auto retail sales jumped 19% in January 2026 to over 2.7 million units, primarily fueled by a 20.82% growth in two-wheeler sales, particularly strong in rural areas.
India's auto retail sales experienced a robust 19% year-on-year surge in January 2026, surpassing 2.7 million units, with the two-wheeler segment driving the significant growth. Two-wheelers alone accounted for 1,852,870 units, marking a 20.82% year-on-year increase, with rural areas contributing 56% to these sales. This strong performance in rural markets was buoyed by factors such as the Pongal/Makar Sankranti festivals, the marriage season, and improved affordability.
The Federation of Automobile Dealers Associations (FADA) President, Mr. C S Vigneshwar, noted a clear revival in urban markets as well, signaling a normalization of demand beyond festive-only purchasing. Dealer feedback indicates strong enquiry momentum, driven by enhanced customer engagement, quicker digital follow-ups, and a noticeable shift towards higher-value and mid-powered motorcycles.
Beyond two-wheelers, other vehicle categories also demonstrated positive growth: passenger vehicles (PV) saw a 7.22% increase, commercial vehicles (CV) grew by 15.07%, and three-wheelers by 18.80% year-on-year. The passenger vehicle segment, while still largely urban-led, is witnessing significant growth in non-metro areas, with rural PV sales increasing by 14.43% year-on-year, considerably outpacing urban growth.
