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Total retail sales stand at 24,09,362 units in February, compared with 19,17,934 units in the same month last year, marking a 25.62 per cent increase.
Auto Sales Data February 2026.
Domestic automobile retail sales surged 26 per cent year-on-year in February, extending the strong momentum seen after the implementation of GST 2.0, with improved affordability and stronger market confidence boosting demand across most vehicle segments, the Federation of Automobile Dealers Associations (FADA) said on Thursday.
Total retail sales stood at 24,09,362 units in February, compared with 19,17,934 units in the same month last year, marking a 25.62 per cent increase.
FADA President C S Vigneshwar said the growth was broad-based across the industry. “The growth was broad-based across almost all segments…Five out of six categories — two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and tractors — registered their highest-ever February retail volumes, clearly highlighting the strength of underlying demand in the market,” he said in a statement.
Passenger Vehicle Sales
Passenger vehicle retail sales rose to 3,94,768 units in February, compared with 3,13,015 units in the year-ago period.
“The momentum remained broad-based with urban markets growing 21 per cent YoY while rural markets surged 34 per cent YoY, indicating a strong continued demand beyond metros,” Vigneshwar said.
He added that the stronger rural demand is supporting small car sales, even as SUVs and utility vehicles continue to drive overall passenger vehicle volumes.
According to dealers, improved affordability following GST rationalisation, the ongoing marriage season, and strong booking pipelines supported by new model launches helped sustain demand during the month.
Two-Wheeler Segment
Two-wheeler retail sales increased to 17,00,505 units in February, up from 13,60,155 units in the same month last year.
Dealers attributed the growth to better rural liquidity following good crop outcomes, attractive marketing schemes and improved affordability after GST revisions. Seasonal factors such as the marriage season and new product introductions also helped boost enquiries.
Commercial Vehicles
Retail sales of commercial vehicles rose to 1,00,820 units, compared with 78,219 units in February last year.
Dealers across regions reported improved freight availability, steady e-commerce activity and infrastructure-driven demand, which encouraged fleet additions.
FADA noted that the positive sentiment following GST 2.0 also supported secondary demand and bulk purchases.
However, some regions reported supply constraints for certain models, though overall booking pipelines and market movement remained strong.
Three-Wheelers and Tractors
Retail sales of three-wheelers stood at 1,17,130 units, while tractor sales reached 89,418 units during the month.
Both segments also recorded their highest-ever February retail volumes, reflecting continued strength in rural demand and last-mile mobility.
Outlook
FADA said the business outlook for March remains cautiously optimistic, supported by festive demand and year-end buying.
“Overall, the next three months still appear cautiously optimistic – the growth momentum is intact, but compared to the sharper optimism seen earlier, the survey now indicates that the industry may gradually move from a phase of strong rebound to a phase of more stable and calibrated growth,” the association said.
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March 05, 2026, 12:19 IST
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