What is the story about?
India recorded retail sales of 27.23 lakh vehicles in January 2026, up 34.19% month-on-month and 17.61% year-on-year (YoY), according to the latest report by the Federation of Automobile Dealers Associations (FADA).
FADA President C S Vigneshwar said, “January’26 has delivered a strong, broad-based start to the calendar year, with overall vehicle retail at 27,22,558 units, registering +17.61% YoY. The growth was powered by continued post-GST momentum, healthy rural cashflows on the back of harvest and weddings, and sustained demand visibility across mobility and freight.”
Passenger car inventory levels continued to ease in January, with stock holding at around 32–34 days. Demand patterns in January showed a clear urban–rural split across segments. Two-wheelers remained rural-heavy, with about 56% of sales in rural markets and 44% in urban areas.
Passenger vehicles stayed urban-led, where cities accounted for around 59.2% of sales, while rural markets contributed about 40.8%, reflecting widening demand beyond metros.
Two-wheelers lead volumes
Two-wheeler retail stood at 18.53 lakh units, rising 40.70% MoM and 20.82% YoY. Rural markets grew 19.77% YoY, while urban sales increased 22.19% YoY.
Among manufacturers, Hero MotoCorp remained the market leader with 4.92 lakh units and a 26.56% share. Honda Motorcycle and Scooter India followed with 4.73 lakh units (25.52%).
TVS Motor Company sold 3.64 lakh units (19.6%), while Bajaj Auto recorded 1.96 lakh units (10.56%). Royal Enfield reported 1.06 lakh units, taking a 5.74% share.
Petrol and ethanol models accounted for 93.27% of two-wheeler sales, while EVs made up 6.63%.
Passenger vehicle sales grow
Passenger vehicle (PV) retail reached 5.13 lakh units, up 35.24% MoM and 7.22% YoY. Rural PV sales rose 14.43% YoY, compared with 2.75% YoY growth in urban markets.
Maruti Suzuki India led PV sales with 2.16 lakh units and a 42.07% market share. Hyundai Motor India sold 65,914 units (12.84%), followed by Tata Motors at 63,558 units (12.38%).
Mahindra & Mahindra's sales stood at 63,366 units (12.34%). Toyota Kirloskar Motor recorded 35,053 units with a 6.83% share, while Kia India sold 29,954 units (5.83%).
Fuel mix in PVs showed petrol/ethanol at 47.49%, CNG/LPG at 22.91%, diesel at 17.07%, hybrids at 8.94%, and EVs at 3.60%.
Commercial vehicle demand improves
Commercial vehicle (CV) retail totalled 1.07 lakh units, increasing 28.47% MoM and 15.07% YoY. Rural CV sales grew 16.25% YoY, while urban markets rose 13.94% YoY.
Tata Motors led the segment with 36,571 units and a 34.02% share. Mahindra & Mahindra followed with 31,884 units (29.66%). Ashok Leyland sold 19,205 units (17.87%), while VE Commercial Vehicles recorded 8,078 units (7.52%).
Diesel remained dominant in CVs with an 81.97% share, followed by CNG/LPG at 12.51% and EVs at 1.92%.
Three-wheelers post YoY growth
Three-wheeler (3W) retail stood at 1.27 lakh units. Sales were down 0.50% MoM but up 18.80% YoY. Rural 3W sales jumped 31.64% YoY, while urban growth was 5.69% YoY.
Bajaj Auto led the segment with 44,980 units and a 35.38% market share. Piaggio Vehicles followed at 8,543 units (6.72%).
Mahindra & Mahindra (including Last Mile Mobility) recorded a combined presence of over 8,200 units. TVS Motor Company also expanded in this category with 5,517 units.
Fuel mix trend showed EVs leading with 59.61%, followed by CNG/LPG 27.10%, diesel 12.88%, and petrol/ethanol 0.41%.
Tractor sales remain strong YoY
Tractor retail reached 1.15 lakh units, nearly flat MoM (-0.21%) but up 22.89% YoY. Rural tractor sales increased 21.22% YoY, while urban markets rose 30.19% YoY.
Mahindra & Mahindra (including Swaraj Division) led with a combined total of nearly 48,000 units, holding over 41% market share.
TAFE sold 13,459 units (11.73%). Escorts Kubota recorded 12,313 units (10.73%), while John Deere India sold 8,082 units (7.04%).
FADA President C S Vigneshwar said, “January’26 has delivered a strong, broad-based start to the calendar year, with overall vehicle retail at 27,22,558 units, registering +17.61% YoY. The growth was powered by continued post-GST momentum, healthy rural cashflows on the back of harvest and weddings, and sustained demand visibility across mobility and freight.”
Passenger car inventory levels continued to ease in January, with stock holding at around 32–34 days. Demand patterns in January showed a clear urban–rural split across segments. Two-wheelers remained rural-heavy, with about 56% of sales in rural markets and 44% in urban areas.
Passenger vehicles stayed urban-led, where cities accounted for around 59.2% of sales, while rural markets contributed about 40.8%, reflecting widening demand beyond metros.
Two-wheelers lead volumes
Two-wheeler retail stood at 18.53 lakh units, rising 40.70% MoM and 20.82% YoY. Rural markets grew 19.77% YoY, while urban sales increased 22.19% YoY.
Among manufacturers, Hero MotoCorp remained the market leader with 4.92 lakh units and a 26.56% share. Honda Motorcycle and Scooter India followed with 4.73 lakh units (25.52%).
TVS Motor Company sold 3.64 lakh units (19.6%), while Bajaj Auto recorded 1.96 lakh units (10.56%). Royal Enfield reported 1.06 lakh units, taking a 5.74% share.
Petrol and ethanol models accounted for 93.27% of two-wheeler sales, while EVs made up 6.63%.
Passenger vehicle sales grow
Passenger vehicle (PV) retail reached 5.13 lakh units, up 35.24% MoM and 7.22% YoY. Rural PV sales rose 14.43% YoY, compared with 2.75% YoY growth in urban markets.
Maruti Suzuki India led PV sales with 2.16 lakh units and a 42.07% market share. Hyundai Motor India sold 65,914 units (12.84%), followed by Tata Motors at 63,558 units (12.38%).
Mahindra & Mahindra's sales stood at 63,366 units (12.34%). Toyota Kirloskar Motor recorded 35,053 units with a 6.83% share, while Kia India sold 29,954 units (5.83%).
Fuel mix in PVs showed petrol/ethanol at 47.49%, CNG/LPG at 22.91%, diesel at 17.07%, hybrids at 8.94%, and EVs at 3.60%.
Commercial vehicle demand improves
Commercial vehicle (CV) retail totalled 1.07 lakh units, increasing 28.47% MoM and 15.07% YoY. Rural CV sales grew 16.25% YoY, while urban markets rose 13.94% YoY.
Tata Motors led the segment with 36,571 units and a 34.02% share. Mahindra & Mahindra followed with 31,884 units (29.66%). Ashok Leyland sold 19,205 units (17.87%), while VE Commercial Vehicles recorded 8,078 units (7.52%).
Diesel remained dominant in CVs with an 81.97% share, followed by CNG/LPG at 12.51% and EVs at 1.92%.
Three-wheelers post YoY growth
Three-wheeler (3W) retail stood at 1.27 lakh units. Sales were down 0.50% MoM but up 18.80% YoY. Rural 3W sales jumped 31.64% YoY, while urban growth was 5.69% YoY.
Bajaj Auto led the segment with 44,980 units and a 35.38% market share. Piaggio Vehicles followed at 8,543 units (6.72%).
Mahindra & Mahindra (including Last Mile Mobility) recorded a combined presence of over 8,200 units. TVS Motor Company also expanded in this category with 5,517 units.
Fuel mix trend showed EVs leading with 59.61%, followed by CNG/LPG 27.10%, diesel 12.88%, and petrol/ethanol 0.41%.
Tractor sales remain strong YoY
Tractor retail reached 1.15 lakh units, nearly flat MoM (-0.21%) but up 22.89% YoY. Rural tractor sales increased 21.22% YoY, while urban markets rose 30.19% YoY.
Mahindra & Mahindra (including Swaraj Division) led with a combined total of nearly 48,000 units, holding over 41% market share.
TAFE sold 13,459 units (11.73%). Escorts Kubota recorded 12,313 units (10.73%), while John Deere India sold 8,082 units (7.04%).
