TL;DR
India's automotive industry achieved its strongest-ever January retail sales in 2026, driven by favorable policies and strong consumer demand across all segments, with passenger vehicles leading the growth.
The Indian automotive industry has commenced 2026 with its most robust January retail sales performance to date. Domestic vehicle sales across passenger vehicles, two-wheelers, and commercial vehicles surpassed 2.72 million units, marking a significant increase from 2.32 million units in January 2025. This record-breaking momentum is attributed to a favorable policy environment, including GST cuts in September 2025, income tax rebates, and sustained consumer demand across all vehicle segments.
Passenger vehicle retail sales alone reached approximately 4.55 lakh units in January. Leading automakers such as Maruti Suzuki, Tata Motors, Mahindra & Mahindra, and Hyundai Motor India all reported strong year-on-year growth and, in some cases, all-time high sales figures. Maruti Suzuki India maintained its market leadership with 185,943 domestic units, contributing to a total sales volume of 236,963 units, including exports and OEM supplies. The company also noted a sharp 25 percent increase in bookings, though it hinted at potential price hikes in the coming months due to rising input costs.
