New Delhi: Domestic automobile retail sales surged 26 per cent year-on-year in February, extending the momentum seen after GST 2.0, with improved affordability and market confidence translating into broad-based growth across segments, dealers’ body FADA said on Thursday.
The overall retail sales last month rose to 24,09,362 units as compared with 19,17,934 units in February 2025, registering an increase of 25.62 per cent.
“The growth was broad-based across almost all segments...Five out of six categories -- two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and tractors -- registered their highest-ever February retail volumes, clearly highlighting the strength of underlying demand in the market,” FADA President C S Vigneshwar said in a statement.
On a YoY basis, two-wheelers grew by 25.02 per cent, three-wheelers by 24 per cent, passenger vehicles by 26.12 per cent, and commercial vehicles by 28.89 per cent, reflecting healthy demand across both personal mobility as well as economic activity-driven segments.
Passenger vehicle retails rose to 3,94,768 units last month as compared with 3,13,015 units in the year ago-period.
Two-wheeler retails rose to 17,00,505 units last month as compared with 13,60,155 units in February last month.
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, the industry body said.
In the commercial vehicle segment, dealers across regions reported improved freight availability, steady e-commerce activity and infrastructure-linked demand supporting fleet additions.
The positive sentiment following GST 2.0 also helped improve secondary demand and bulk purchases.
However, some pockets saw supply constraints for certain models, though the overall pipeline of bookings and market movement remained encouraging, FADA (Federation of Automobile Dealers Associations) stated.
Commercial vehicle sales rose to 1,00,820 units in February as against 78,219 units in the same month last year.
Three-wheeler and tractor retail sales stood at 1,17,130 and 89,418 units, respectively, in February.
FADA noted that the business outlook for March appears cautiously optimistic, with festive demand and year-end dynamics expected to keep retail momentum intact.