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India’s retail vehicle sales grow 25.62% Y-o-Y to 24.09 lakh units in February: FADA
Mar-05-2026

A report released by the Federation ‌of Automobile Dealers Associations (FADA) has said that India’s retail vehicle sales grew 25.62% year-on-year (Y-o-Y) to 24.09 lakh units in the month of February 2026. FADA has attributed this growth to the policy-led confidence in the market, particularly after GST 2.0 which is now translating into sustained demand across multiple vehicle segments. Besides, the Two-Wheeler sales during the month were reported at 17,00,505 units, a YoY growth of 25.02% with Urban and Rural markets’ sales growing 28.96% Y-o-Y and 22.16% Y-o-Y, respectively. This performance was attributed to improved rural liquidity following good crop outcomes and attractive marketing schemes. 

Moreover, the Passenger Vehicle retails increased 26.12% Y-o-Y to 3,94,768 units in February 2026 with sales in Urban markets growing 21.12% Y-o-Y, while Rural markets surged 34.21% Y-o-Y, indicating a strong continued demand beyond metros. Further, the marriage season and healthy booking pipelines supported by new model introductions aided demand during the month. During the month, Commercial Vehicle retail sales rose 28.89% Y-o-Y to 1,00,820 units with improved freight availability, steady e-commerce activity and infrastructure-linked demand supporting fleet additions. Meanwhile, Three-Wheelers retail sales grew 24.39% Y-o-Y to 1,17,130 units in February 2026.

Looking forward, FADA noted that dealer sentiment for the month of March 2026 remains largely positive, and demand is likely 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. It added that strong booking pipelines, improved agri incomes and post-examination demand are expected to support two-wheeler, while passenger vehicles may benefit from year-end depreciation advantages, festival-led enquiries and customers advancing purchases ahead of potential price revisions.

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