Retail vehicle sales in India witnessed a strong surge in February, rising 25.62 percent year-on-year to 24.09 lakh units, surpassing the previous record set in February 2024. The data was released on Thursday by the Federation of Automobile Dealers Associations (FADA).
The growth was seen across nearly all vehicle segments, reflecting robust consumer demand as well as increased economic activity in the country.
Growth Across All Vehicle Segments
According to FADA, almost every major vehicle category recorded significant growth in February.
- Two-wheelers: Sales increased by 25.02%
- Three-wheelers: Sales grew by 24.39%
- Passenger vehicles: Sales rose by 26.12%
- Commercial vehicles: Sales jumped by 28.89%
The data indicates strong demand for both personal mobility vehicles and vehicles linked to economic and logistics activities.
Dealers Remain Optimistic for March
Auto dealers remain largely optimistic about the market outlook for March.
Around 75.51 percent of dealers expect further growth in sales, while 19.90 percent anticipate stable demand. Only 4.59 percent foresee a possible decline in vehicle sales.
Tractor Segment Shows Strongest Growth
The tractor segment recorded the highest growth, registering a 36.35 percent increase in February. This makes it the fastest-growing category during the month, supported by positive rural demand and a strong agricultural outlook.
However, construction equipment was the only segment that did not set a new record, witnessing a slight 1.22 percent decline year-on-year.
Government Policies Boost Market Confidence
FADA stated that the strong market performance reflects growing confidence among consumers and businesses following supportive government policies.
Market stability and improved confidence after changes in GST 2.0 have helped strengthen demand across multiple vehicle segments.
Two-Wheeler Sales Cross 17 Lakh Units
Retail sales of two-wheelers reached 17,00,505 units, marking a 25.02 percent increase compared to the previous year.
Dealers attributed the growth to:
- A good agricultural harvest
- Improved rural cash flow
- Attractive marketing schemes
- Better pricing after GST revisions
Commercial Vehicle Demand Remains Strong
Commercial vehicle sales stood at 1,00,820 units in February, registering a 28.89 percent increase year-on-year.
Dealers said improved freight movement, steady e-commerce activity, and strong demand from infrastructure projects contributed to higher purchases of commercial vehicles.
Passenger Vehicle Sales Near 4 Lakh Units
Retail sales of passenger vehicles reached 3,94,768 units, showing 26.12 percent growth on a yearly basis.
Urban markets recorded a 21.12 percent increase, while rural markets grew faster at 34.21 percent, indicating strong demand beyond metro cities.
According to the report, rising demand in rural areas is particularly supporting the sales of small cars, although SUVs and utility vehicles continue to dominate the overall passenger vehicle market.
