India’s auto recovery hits fifth gear
Industry volumes jump 10-11 percent in February, five months after GST cuts, signalling durable recovery
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Prefer us on GoogleLast Updated: Mar 02, 2026, 09:57 IST2 min
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Five months after the government slashed GST rates to bolster consumption, the automotive sector continues to post double-digit growth, indicating that demand is sustaining beyond the initial burst of pent-up momentum.
Industry wholesale volumes for February reached between 420,000 and 425,000 units, according to an industry executive, representing 10–11 percent growth over the 381,665 units sold in the same month last year.
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Manufacturers across the board posted higher year-on-year sales, even as the market leader, Maruti Suzuki, struggled to keep pace with demand.
Maruti currently ships approximately 2.6 times the volume of its nearest competitor. That scale is now leading to production constraints that are beginning to bottleneck its substantial order book.
Maruti reported total sales of 213,995 units for the month.
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“Our production capacity is 24 lakh, almost 2 lakhs per month, but now we are operating at more than 100 percent,” said Partho Banerjee, Senior Executive Officer for Marketing & Sales at Maruti Suzuki. “2.14 lakh in 28 days is something very close to almost 26 lakhs [annualised run-rate].”
Within the domestic passenger vehicle segment, the company sold 161,000 units, a marginal increase from 160,791 units a year earlier.
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The battle for the second spot intensified as Tata Motors Passenger Vehicles surged ahead, posting a 34 percent increase in domestic sales to 62,329 units. The company’s aggressive push into electrification continues to pay dividends, with electric vehicle sales jumping 57 percent to 8,385 units.
Tata’s Nexon was the top-selling model in February with 19,430 units, displacing the Maruti Dzire to second spot with 19,326 units.
Mahindra & Mahindra sold 60,018 SUVs in the domestic market, a 19 percent increase over the previous year. “Total vehicle sales stood at 97,177 units, an 18 percent year-on-year growth,” said Nalinikanth Gollagunta, CEO, Automotive Division, M&M Ltd.
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Hyundai Motor India also joined the record-breaking streak, achieving its highest-ever February domestic volume since its inception, with 52,407 units, a growth of 9.8 percent. The company’s total sales, bolstered by a significant 24.8 percent jump in exports, stood at 66,134 units.
“We kicked off 2026 on a high note, achieving our highest-ever monthly sales in January, and the momentum continues in February,” said Tarun Garg, MD & CEO, HMIL.
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Kia India also recorded its best-ever February wholesales of 27,610 units, a 10.3 percent year-on-year increase. Senior Vice President Atul Sood noted that the performance reflects the growing trust in the brand, particularly for the new Seltos and its expanding electric mobility line-up.
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Inside India’s bet on talking cars Further down the rankings, Honda Cars India reported flat domestic volumes, with 5,629 units sold. The company noted that the Honda Amaze and the Elevate SUV were the primary drivers of its sales momentum. Total sales, including exports, were down 30 percent.
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Meanwhile, Renault India outpaced the broader industry’s growth rate, reporting a 31 percent surge in sales to 3,495 units. The company’s growth was spearheaded by the Triber, which saw a 57 percent jump in demand.
As the industry enters the final month of the fiscal year, executives remain optimistic that the combination of favourable policy and product innovation will carry this momentum into the next quarter.
First Published: Mar 02, 2026, 09:57
Subscribe NowHimani is an Associate Editor at Forbes India where she writes about startups shaking things up, legacy firms seeking fresh grounds, and sectors in the middle of big transformations. Always curious ab
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