Auto Retail Sales Jump 25.6% YoY, Hit Record High In Feb 2026: FADA

Auto Retail Sales Jump 25.6% YoY, Hit Record High In Feb 2026: FADA New Delhi, Mar 5 (KNN) Vehicle retail sales in India recorded their best-ever February performance in 2026, with total retails reaching 24.09 lakh units, a 25.62 per cent year-on-year (YoY) increase, according to the Federation of Automobile Dealers Associations (FADA).C. S. Vigneshwar, President, FADA, said, “Feb’26 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.”Five out of six vehicle categories — two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and tractors — recorded their highest-ever February retail volumes. Construction equipment was the only segment to decline, slipping 1.22 per cent YoY.“Overall, the strong performance during the month indicates that the policy-led confidence in the market, particularly following GST 2.0, is now translating into sustained demand across multiple vehicle segments,” he added.Growth Across SegmentsTwo-wheeler sales rose 25.02 per cent YoY to 17,00,505 units, while urban markets grew 28.96 per cent YoY and rural markets grew 22.16 per cent YoY.Vigneshwar noted, “Dealers attributed this performance to improved rural liquidity following good crop outcomes, attractive marketing schemes and better affordability post GST revisions, while the marriage season and new product introductions also supported enquiries. However, in some regions supply constraints in select models and board examinations slightly tempered the otherwise strong momentum.”Passenger vehicle sales increased 26.12 per cent YoY to 3,94,768 units. Rural demand grew sharply by 34.21 per cent YoY compared with 21.12 per cent YoY growth in urban markets. Strong demand for SUVs and utility vehicles, improved affordability and healthy booking pipelines supported sales.“Encouragingly, PV inventory levels have further reduced by about five days and now stand at 27–29 days, which is an extremely healthy sign. We appreciate PV OEMs for moving inventory closer to FADA’s recommended 21-day level, reflecting improved supply discipline and stronger alignment between wholesale dispatches and retail demand,” Vigneshwar said.Commercial vehicle retails rose 28.89 per cent YoY to 1,00,820 units, driven by improved freight availability, steady e-commerce activity and infrastructure-led demand.Tractors emerged as the fastest-growing category, with sales rising 36.35 per cent YoY during the month.Outlook for MarchFADA’s dealer survey showed that 75.51 per cent of dealers expect growth in March, while 19.9 per cent foresee stable demand and 4.59 per cent anticipate a decline.Demand is expected to be supported by festivals such as Navratri, Ramzan, Ugadi, Gudi Padwa and Eid, along with the financial year-end buying cycle.Near-Term Industry OutlookDealer sentiment for the March–May period remains positive, though slightly more measured than earlier expectations. Around 67.35 per cent of dealers expect growth, compared with nearly 80 per cent in the previous outlook.Two-wheelers are likely to benefit fr0m festivals, strong rural cash flows and carry-forward bookings, while passenger vehicles may see strong March demand due to year-end purchases and new model launches before moderating in the summer months.Commercial vehicle demand is expected to remain steady, supported by economic activity, goods movement and infrastructure spending. However, supply constraints, liquidity conditions and global geopolitical developments remain key factors to monitor.(KNN Bureau)