February 2026 becomes best-ever month for Indian auto retail: FADA

February 2026 set a new record for India's auto retail sector, becoming the 'best-ever February' with 24.09 lakh units sold, a 25.62% YoY growth. FADA reported strong performance across all major segments, including two-wheelers and PVs.

February 2026 emerged as the "best-ever February" for two-wheelers, three-wheelers, commercial vehicles, passenger vehicles, tractors and overall retail, according to the Federation of Automobile Dealers Associations (FADA). The industry delivered a strong performance with total vehicle retails touching 24.09 lakh (24,09,362) units, marking a 25.62 per cent year-on-year (YoY) growth and surpassing the previous best February of 2024.

Reflecting on the performance, FADA President C S Vigneshwar stated, "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....and surpassing the previous best Feb of 2024"

Segment-wise Performance Breakdown

Two-Wheeler Sales Surge

The two-wheeler segment reached 17,00,505 units, up 25.02 per cent YoY, as urban markets rose 28.96 per cent and rural markets grew 22.16 per cent. "Dealers attributed this performance to improved rural liquidity following good crop outcomes, attractive marketing schemes and better affordability post GST revisions, while the marriage season and new product introductions also supported enquiries. However, in some regions, supply constraints in select models and board examinations slightly tempered the otherwise strong momentum," Vigneshwar noted.

Passenger Vehicles See Strong Growth

Passenger vehicle retails stood at 3,94,768 units, registering a 26.12 per cent growth. Rural markets in this segment surged 34.21 per cent, outpacing the 21.12 per cent growth in urban areas. Vigneshwar said, "The sharper rural growth is particularly encouraging as it is supporting the sale of small cars, even as SUVs and utility vehicles continue to drive overall volumes. Improved affordability following GST rationalisation, the marriage season and healthy booking pipelines supported by new model introductions also aided demand during the month."

Commercial Vehicles and Tractors Post Gains

Commercial vehicle retails grew by 28.89 per cent to 1,00,820 units, supported by freight movement, e-commerce activity, and infrastructure-led demand. Tractors emerged as the fastest-growing category with a 36.35 per cent increase. The only segment which saw a marginal decline of 1.22 per cent was construction equipment.

Outlook for March 2026

Looking ahead to March 2026, FADA expects growth of 75.51 per cent, supported by festivals such as Navratri, Ramzan, and Gudi Padwa, alongside the financial year-end buying cycle.

"Overall, the outlook for March'26 appears cautiously optimistic, with festive demand and year-end dynamics expected to keep retail momentum intact," FADA said in a release. (ANI)

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