Two-Wheelers Take the Lead: India’s Auto Industry Sees Double-Digit Growth in January

The Indian auto industry began 2026 on a high note, with January sales reflecting robust consumer demand and improved availability across segments. According to data from the Federation of Automobile Dealers Associations (FADA), total retail sales reached 27,22,558 units, marking a 17.61% year-on-year increase.
Why This Matters

The surge highlights strong rural cash flows, seasonal demand, and renewed confidence in mobility and freight sectors. Passenger vehicles, two-wheelers, and commercial vehicles all contributed to this growth, signaling a healthy start to the year for manufacturers and dealers alike.

Key Highlights

• Two-Wheelers: Sales rose 20.82% to 18,52,870 units, driven by rural demand and early-year incentives.
• Passenger Vehicles: Factory dispatches crossed 4.5 lakh units, up 12.7% year-on-year, supported by SUV and EV demand.
• Three-Wheelers: Registrations stood at 75,725 units, reflecting steady demand in urban mobility.
• Commercial Vehicles: Sales climbed 15.07% to 1,07,486 units, buoyed by freight activity and replacement demand.
• Overall Growth: Total auto retail sales rose 17–18% YoY, underscoring strong consumer sentiment and improved financing support.

Final Note
India’s January auto sales data underscores a promising trajectory for 2026, with two-wheelers and passenger vehicles leading the charge. The industry’s resilience, supported by rural demand and evolving consumer preferences, sets the stage for continued growth in the months ahead.

Sources: FADA, CNBC TV18, Auto Punditz, Team-BHP