According to the latest data released by the Federation of Automobile Dealers Associations (FADA), overall retail of vehicles stood at 24,09,362 units in Feb 2026, registering a +25.62% YoY growth. As many as 17,00,505 units of two wheelers were retailed in the month (+25.02% YoY), passenger vehicles 3,94,768 units (+26.12% YoY), CVs 1,00,820 units (+28.89% YoY), 3Ws 1,17,130 units (+24.39% YoY), tractors: 89,418 units (+36.35% YoY) and construction equipment OEMs 6,721 units ( -1.22% YoY)
FADA mentioned that despite being a shorter month, retail performance remained exceptionally strong across segments.
• 2W: Growth remained broad-based with Urban +28.96% YoY and Rural +22.16% YoY
• PV: Rural +34.21% YoY outpaced Urban +21.12% YoY, with rural recovery also supporting small car demand. The SUV segment continues to lead the category
•CV: Healthy momentum continued, supported by freight movement, e-commerce activity and infrastructure-led demand
• Tractors: At +36.35% YoY, tractors were the fastest-growing segment
Inventory Signal
• PV inventory reduced further to 27–29 days, moving closer to FADA’s recommended 21-day benchmark and indicating healthier wholesale-retail alignment
Near-Term Outlook – March’26
• 75.51% of dealers expect growth, while only 4.59% foresee de-growth
• Demand is likely to be supported by festivals and financial year-end buying
• Overall sentiment remains Cautiously Optimistic
Reflecting on February2026 Auto Retail performance, FADA President C S Vigneshwar 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. Despite being a shorter month, the industry delivered an exceptional performance with total vehicle retails touching 24.09 lakh units, marking a strong 25.62% YoY growth and surpassing the previous best Feb of 2024. The growth was broad-based across almost all segments. On a YoY basis, Two-Wheeler grew by 25.02%, Three-Wheelers by 24.39%, Passenger Vehicles by 26.12%, and Commercial Vehicles by 28.89%, reflecting healthy demand across both personal mobility as well as economic activity-driven segments. Tractors continued their strong run with a sharp 36.35% growth, emerging as the fastest-growing category during the month. With this, five out of six categories—2W, 3W, PV, CV and Tractors—registered their highest-ever February retail volumes, clearly highlighting the strength of underlying demand in the market. The only segment which did not set a fresh February record was Construction Equipment, which saw a marginal decline of 1.22% 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. Looking ahead to March’26, dealer sentiment remains largely positive with 75.51% of dealers expecting growth, while 19.90% foresee a stable market and only 4.59% anticipate a decline. Demand is expected 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. In the two-wheeler segment, strong booking pipelines, improved agri incomes and post-examination demand are expected to support retail momentum. Passenger vehicles may benefit from year-end depreciation advantages, festival-led enquiries and customers advancing purchases ahead of potential price revisions. Meanwhile, commercial vehicles are likely to see continued traction driven by infrastructure activity, freight movement and strong pipeline bookings as businesses close the financial year. However, supply constraints in certain models and evolving global geopolitical developments remain factors to watch. Overall, the outlook for March’26 appears cautiously optimistic, with festive demand and year-end dynamics expected to keep retail momentum intact.