India’s Auto Retail Sales Surge 25.6% in February 2026, Led by Passenger Vehicles and Two-Wheelers
Novel Delhi – India’s retail automobile sales experienced substantial growth in February 2026, rising by 25.6% year-over-year to reach 24 lakh units, according to data released by the Federation of Automobile Dealers Associations (FADA).1 This marks the “best-ever February” for the Indian auto retail sector, surpassing the previous high recorded in 2024.2
Key Highlights of February 2026 Auto Sales
- Overall Retail Growth: Total vehicle retail sales reached 24,09,362 units, a 25.62% increase compared to February 2025.2
- Passenger Vehicle Sales: Passenger vehicle sales grew by 26.12%, reaching 3,94,768 units.2 Rural markets demonstrated stronger growth (34.21%) than urban areas (21.12%).
- Two-Wheeler Sales: The two-wheeler segment saw a significant increase of 25.02%, with sales totaling 17,00,505 units.2 Urban markets grew by 28.96%, while rural markets expanded by 22.16%.
- Commercial Vehicle Sales: Retail sales of commercial vehicles also increased, reflecting positive activity in infrastructure and construction sectors.
- Tractor Sales: Tractor sales experienced growth, indicating improving conditions in the agricultural sector.
Electric Vehicle (EV) Sales on the Rise
Electric vehicle sales across all categories – two-wheelers, passenger vehicles, commercial vehicles, and three-wheelers – showed year-over-year growth in February 2026.1
- Electric Two-Wheelers (E2W): Sales increased by 46% to 111,709 units, despite a 9% month-on-month decline.2
- Ola Electric’s Market Share: Ola Electric was displaced from the top five E2W manufacturers, recording its lowest sales in four years (3,968 units), a 54% decrease year-over-year.2
- Top E2W Manufacturers: TVS Motor, Bajaj Auto, and Ather Energy collectively contributed 70% of E2W sales in February.2
- Electric Passenger Vehicles: Sales rose by 44% to 13,733 units.2
- Electric Commercial Vehicles: Sales increased by 156% to 2,051 units.1
- Electric Three-Wheelers: Remained the most electrified segment with 66,398 units sold, a 25.09% increase.1
Factors Driving Growth
Several factors contributed to the strong performance of the Indian auto retail sector in February 2026:
- Improved consumer sentiment
- Better availability of financing options
- Stable economic conditions
- Strong rural demand
- Festival-related demand
- Favorable financing conditions
- Improved vehicle availability
Outlook
The Indian automotive sector is expected to maintain its positive momentum, supported by infrastructure development, economic growth, and sustained demand from both rural and urban markets. FADA President C S Vigneshwar noted that the EV story is being built on a stronger foundation with improving product choices, expanding charging infrastructure, and growing consumer confidence.2