January auto retail sales rise sharply, two-wheelers lead with 20.8% YoY growth: FADA

FADA Data Released: The Federation of Automobile Dealers Associations (FADA) on Tuesday, February 10, released auto retail sales data for January, showing broad-based growth across segments. Two-wheelers led the momentum, posting a strong 20.82 per cent year-on-year (YoY) increase. Demand continued to remain India-centric, with rural markets accounting for around 56 per cent of sales, while urban areas contributed the remaining 44 per cent.

According to the data, retail sales of vehicles in India have made a strong start to the calendar year 2026, registering a year-on-year (YoY) growth of 17.61 per cent in January. Total registrations during the month reached 27,22,558 units on the back of a good cash flow situation in rural areas, wedding season demand and sustained momentum in the mobility and freight sectors.

Growth was seen across most categories, with two-wheelers and tractors leading the way. Two-wheeler sales increased by 20.82 per cent to 18,52,870 units, while tractor registrations rose by 22.89 per cent to 1,14,759 units.

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The commercial vehicle segment also witnessed a growth of 15.07 per cent, taking its sales to 1,07,486 units. Passenger vehicle sales grew at a relatively moderate pace of 7.22 per cent, totalling 5,13,475 units.

In contrast, the construction equipment sector registered a decline of 21.09 per cent, which the industry attributed to high base effect and specific market readjustments.

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"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," stated FADA President C. S. Vigneshwar. He noted that the performance was powered by post-GST momentum and robust demand visibility. He further observed that "the demand engine remains anchored in Bharat," highlighting that the rural market accounted for approximately 56 per cent of the two-wheeler segment.

In the passenger vehicle category, rural markets performed much better than urban centers. Growth in urban areas was 2.75 per cent, while rural areas saw a 14.43 per cent increase in registrations. This trend indicates structural expansion of demand in non-metropolitan India due to increasing demand for SUVs and compact SUVs as well as improved product availability. Additionally, inventory levels for passenger vehicles declined to 32-34 days, indicating better channel discipline and improved working capital efficiency.

Demand for commercial vehicles was reflected in improved freight sentiment and replacement-based buying. Light commercial vehicles grew by 14.94 per cent, while heavy commercial vehicles saw a growth of 14.61 per cent. This positive trend is in line with increased infrastructure activity and renewed confidence among sole-owner operators.

Looking ahead, the industry remains optimistic about the near-term outlook. The FADA member survey shows that 72.56 per cent of dealers expect an increase in February. Factors such as a growth-oriented budget focused on infrastructure, stable interest rates and continued favourable conditions during the wedding season are expected to support buying intentions.

"Overall sentiment remains Optimistic," the association noted, though it cautioned that high-base effects and selective supply constraints in certain models could impact growth in specific pockets.