India February 2026 Auto Sales Surge

India's auto retail sector experienced its 'best-ever February' in 2026, with total vehicle sales reaching 24.09 lakh units, a 25.62% year-on-year growth. This strong performance, reported by Federation of Automobile Dealers Associations and commented on by its President C. S. Vigneshwar, was broad-based across two-wheelers, three-wheelers, commercial vehicles, passenger vehicles, and tractors. Factors contributing to this growth include improved rural liquidity, good crop outcomes, attractive marketing schemes, better affordability post GST revisions, the marriage season, and new product introductions. The passenger vehicle segment saw a 26.12% growth, with rural markets outpacing urban areas. Commercial vehicles grew by 28.89%, supported by freight movement and infrastructure demand. Tractors were the fastest-growing category at 36.35%. Federation of Automobile Dealers Associations expects continued growth in March 2026, driven by festivals and year-end buying cycles.