Overview
- FADA reports 2,722,558 registrations in January 2026, up 17.61% year-on-year, with two-wheelers at 1,852,870 (+20.82%), passenger vehicles at 513,475 (+7.22%), commercial vehicles at 107,486 (+15.07%) and tractors at 114,759 (+22.89%).
- Demand was lifted by GST-led affordability gains and stronger rural cashflows from harvests and the wedding season, with rural passenger vehicle sales up 14.43% versus 2.75% growth in urban markets and roughly 56% of two-wheeler sales in rural areas.
- Maruti Suzuki led passenger vehicles with about 42% share as Hyundai, Tata Motors and Mahindra followed closely, while SUVs and compact SUVs anchored growth; in two-wheelers, Hero MotoCorp and Honda topped the charts.
- Dealer channel health improved as passenger vehicle inventory eased to roughly 32–34 days, and a FADA survey showed about 79.7% of retailers expect growth over the next three months, with risks flagged around model availability and election-related disruptions.
- Electrification remained a small slice of sales with EVs at 3.6% of passenger vehicles and 6.6% of two-wheelers, and three-wheeler EV share at 59.6%, each lower than December levels.