Domestic automobile retail sales witnessed a strong surge in February, rising sharply year-on-year as demand improved across most vehicle segments. According to data released by the Federation of Automobile Dealers Associations (FADA), total retail sales reached 24,09,362 units in February 2026, compared to 19,17,934 units in the same month last year. This translates to a growth of 25. 62 per cent, PTI reported.
The dealers’ body said the expansion was visible across nearly all segments of the market. Five out of the six vehicle categories: two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and tractors, recorded their highest-ever February retail volumes, indicating strong consumer demand and improved market sentiment.
Two-wheelers continued to account for the largest share of retail sales.
The segment registered sales of 17,00,505 units in February, up from 13,60,155 units a year ago, marking a growth of around 25 per cent. Dealers attributed this rise to improved rural liquidity following favourable crop outcomes, better affordability after GST changes and attractive promotional schemes offered by manufacturers.
Passenger vehicles also posted healthy growth during the month. Retail sales rose to 3,94,768 units compared to 3,13,015 units in February 2025, reflecting a year-on-year increase of about 26 per cent.
FADA noted that demand remained strong across both urban and rural markets, with urban sales growing by 21 per cent while rural markets saw a sharper jump of 34 per cent. Rural demand, in particular, has helped boost the sales of smaller cars, even as SUVs and utility vehicles continue to dominate overall volumes.
Looking ahead, FADA said the near-term outlook remains cautiously optimistic. Festive demand and financial year-end purchases are expected to support retail momentum in March, although the industry may gradually transition from a phase of sharp rebound to a more stable and steady growth cycle in the coming months. Inputs from PTI.
