It was the best-ever February this year for two-wheeler (2W), three-wheeler (3W), commercial vehicle (CV), passenger vehicle (PV), tractors and overall retail with total sales of 24,09,362 units, a year-on-year (YoY) growth of 25.6 per cent as compared with 19,17,934 units in February 2025.
The strong performance extended the momentum seen after GST 2.0, with improved affordability and market confidence translating into broad-based retail growth, the Federation of Automobile Dealers’ Associations (FADA) said on Thursday, adding that despite being a shorter month, the retail performance remained exceptionally strong across segments.
Segment-wise, PV retail sales grew by 26 per cent YoY to 3,94,768 units in February, as compared with 3,13,015 units in the corresponding month last year.
Two-wheeler sales also grew by 25 per cent YoY during the month to 17,00,505 units, as against 13,60,155 units in the same month last year. Similarly, 3W sales grew by 24.3 per cent YoY to 1,17,130 units last month, as compared with 94,162 units in February 2025, the FADA monthly report indicated.
In terms of CVs, the segment grew by around 29 per cent YoY to 1,00,820 units in February, against 78,219 units in the same month last year.
“February 2026 has turned out to be a landmark month for the Indian auto retail sector, further strengthening the positive momentum seen after the GST 2.0 announcement. The growth was broad-based across almost all segments,” C. S. Vigneshwar, President, FADA, said.
He said the PV inventory reduced further to 27–29 days, moving closer to FADA’s recommended 21-day benchmark and indicating healthier wholesale-retail alignment.
In terms of outlook, Vigneshwar said demand is expected to be supported by the confluence of multiple festivals such as Navratri, Ramzan, Ugadi, Gudi Padwa and Eid, along with the financial year-end buying cycle, which traditionally accelerates vehicle purchases across segments.
“In the 2W segment, strong booking pipelines, improved agri incomes and post-examination demand are expected to support retail momentum. Passenger vehicles may benefit from year-end depreciation advantages, festival-led enquiries and customers advancing purchases ahead of potential price revisions,” he said.
CVs are likely to see continued traction driven by infrastructure activity, freight movement and strong pipeline bookings, as businesses close the financial year. However, supply constraints in certain models and evolving global geopolitical developments remain factors to watch, he said.
“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,” Vigneshwar added.
Published on March 5, 2026