January 2026 Auto Retail Up 17.61% YoY At 27.22 Lakh Units: FADA Report

The Federation of Automobile Dealers Associations (FADA) has released vehicle retail data for January 2026, showing a strong start to the calendar year. Total retail sales stood at 27,22,558 units, up 17.61% year-on-year and 34.19% month-on-month.

Growth was broad-based across most segments, supported by healthy rural demand, wedding season buying, improved freight movement and stable financing conditions. Construction Equipment (CE) was the only segment to report a decline.

Two-Wheelers Lead Growth

Two-wheeler retail reached 18,52,870 units in January, up by 20.82% YoY. Rural markets accounted for about 56% of sales and grew 19.77 %, while urban markets grew faster at 22.19%. Dealer feedback indicates strong enquiry levels, better digital follow-ups and increasing preference for mid-powered motorcycles. However, selective supply constraints and competitive discounting remain in certain pockets.

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Petrol models continued to dominate with a 93.27% share, while EVs accounted for 6.63% of total two-wheeler sales. Hero MotoCorp led the segment with a 26.56% market share, followed closely by Honda Motorcycle & Scooter India at 25.52% and TVS Motor Company at 19.66%.

Passenger Vehicles Up 7.22%

Passenger vehicle (PV) retail stood at 5,13,475 units, up 7.22% YoY and 35.24% MoM. Urban markets contributed 59.2% of sales, but rural growth outpaced urban expansion. Rural PV sales rose 14.43% YoY, compared to 2.75% growth in urban markets.

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Maruti Suzuki retained leadership with a 42.07% market share. Hyundai, Tata Motors and Mahindra followed, each with over 12% share. Kia and Toyota also posted steady gains.

As for the fuel, in PVs, petrol sales stood at 47.49%, diesel at 17.07%, CNG at 22.91%, hybrid at 8.94%, and EV at 3.60%.

Commercial Vehicles Grow 15.07%

Commercial vehicle (CV) retail rose to 1,07,486 units, up 15.07% YoY. Light Commercial Vehicles (LCVs) grew 14.94%, while Heavy Commercial Vehicles (HCVs) increased 14.61%.

Tata Motors led the CV segment with a 34.02% market share, followed by Mahindra & Mahindra at 29.66% and Ashok Leyland at 17.87%. Diesel remains dominant in CVs with an 81.97% share, while CNG accounts for 12.51%, and EV penetration stands at 1.92%.

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Three-Wheelers and Tractors Post Strong Gains

Three-wheeler retail grew 18.80% YoY to 1,27,134 units. Rural growth was particularly strong at 31.64%, while urban markets grew 5.69%. EVs accounted for 59.61% of three-wheeler sales, though down from December’s 69.08%. CNG and diesel followed with 27.10% and 12.88% shares, respectively. Bajaj Auto led the segment with a 35.38% share.

Tractor sales rose sharply by 22.89% YoY to 1,14,759 units, supported by strong rural cash flows. Mahindra & Mahindra (including Swaraj division) remained the market leader.

February and Next Quarter Look Positive

Dealer sentiment remains constructive. According to FADA’s survey, 72.56% of dealers expect growth in February, while only 4.51% foresee a decline. Over the next three months, 79.70% expect growth. Supportive factors include a growth-focused Union Budget, infrastructure and agriculture spending, stable interest rates and wedding-season demand. However, a shorter February, high base effect and localised supply constraints remain key watchpoints.

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Overall, January 2026 retail data indicate healthy demand momentum across most segments, with rural markets continuing to play a pivotal role in driving growth.