Auto wholesale numbers showed strong growth across all major segments heading into the new year, indicating sustained demand following GST rate cuts in September last year. Two‑wheeler sales rose 26% year‑on‑year to 19.26 lakh units in January, reflecting continued demand recovery in both urban and rural markets. Passenger vehicle sales jumped 12.6% to 4.49 lakh units, according to data from the Society of Indian Automobile Manufacturers released on Friday.
Within the two‑wheeler category, motorcycle sales grew 20%, reaching 11.3 lakh units. Scooter sales outpaced the broader segment with a robust 37% jump to 7.51 lakh units. Three‑wheeler sales also posted solid growth, rising 30% to 75,725 units.
Passenger vehicle production growth was 5.6% and two-wheeler was 16%.
"The new year has begun on a positive note, extending the strong momentum seen in the previous quarter, supported by sustained demand following the GST rate reduction," said Rajesh Menon, Director General, SIAM. "The initiatives announced in the Union Budget 2026 to strengthen India's manufacturing base, along with existing policy tailwinds, are expected to deliver long-term benefits for the sector and support growth in the medium term," he added.
Total auto exports for January increased 23.5% year‑on‑year to 5.71 lakh units.
Dealer sentiment for February remains upbeat despite the shorter month and a tougher base. Federation of Automobile Dealers Associations' survey shows 72.56% of dealers expect growth in February, with only 4.51% anticipating de-growth, supported by ongoing wedding-season tailwinds, steady financing conditions, and continued demand visibility across mobility and freight.
Category-wise, two-wheeler is expected to stay positive on improved enquiries, wedding-led mobility purchases, rural liquidity from crops, and growing acceptance of EV models. However, upside will be capped where stock/variant availability remains tight, net-net, outlook is growth to stable, with rural momentum still a key pillar.
ALSO READ: Auto Sales Race Ahead In January As Rural Demand, Weddings, And GST Tailwinds Align
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