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India's Auto Industry Hits Top Gear: Record January Sales with Double-Digit Growth

India's automobile industry began 2026 with record-breaking sales across major segments in January. Passenger vehicle sales grew 12.6% year-on-year, while the two-wheeler and three-wheeler segments saw even stronger double-digit growth. The Society of Indian Automobile Manufacturers (SIAM) attributes the positive momentum to sustained demand following a GST reduction and a favorable economic environment. Policy initiatives from the Union Budget 2026 are expected to further strengthen the sector's manufacturing base and support medium-term growth.

Key Points: India's Auto Sales Hit All-Time High in January 2026

  • Record January PV sales at 449,616 units
  • Two-wheeler sales surge over 20%
  • Three-wheeler segment grows by 30.2%
  • Sector boosted by GST cut and Budget 2026 initiatives
2 min read

India's auto industry in top gear, sales hit all-time high in January

India's auto sector posts record January sales with 12.6% PV growth. SIAM reports strong momentum across 2-wheelers and 3-wheelers, fueled by demand and policy support.

"Passenger vehicles, two-wheelers and three-wheelers posted their highest-ever sales for January - Rajesh Menon, SIAM"

New Delhi, Feb 13

The domestic passenger vehicle sales grew 12.6 per cent to 449,616 units in January, compared to 399,386 units in January 2025, according to data released by industry body Society of Indian Automobile Manufacturers on Friday.

Total sales of passenger vehicles, three-wheelers, two-wheelers, and quadricycles in January stood at 2,927,394 units.

Three-wheelers witnessed strong growth of 30.2 per cent compared to January of the previous year, with sales of 75,725 units, compared to 58,167 units in the same period last year.

"Passenger vehicles, two-wheelers and three-wheelers posted their highest-ever sales for January in 2026, with double-digit growth, compared to January 2025," said Rajesh Menon, director general, SIAM.

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.

"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," Menon mentioned.

In the two-wheeler segment, scooter sales increased by 36.9 per cent year-on-year to 750,580 units, compared to 548,201 units in the same period last year.

Motorcycle sales increased by 20.3 per cent year-on-year to 1,126,416 units, compared to 936,145 units last year. Moped sales increased by 16.1 per cent year-on-year to 48,607 units, compared to 41,872 units in the same period last year.

In the three-wheeler segment, passenger vehicle sales increased by 30.4 per cent on-year to 60,881 units, compared to 46,674 units in the same period last year.

Transport vehicle sales increased by 33.4 per cent on-year to 13,374 units, compared to 10,029 units in the same period last year.

However, e-rickshaw sales declined by 7.9 per cent to 925 units, compared to 1,004 units previously.

- IANS

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Reader Comments

P
Priya S
Great to see the numbers, but I hope this growth is sustainable and not just pent-up demand. Also, the decline in e-rickshaw sales is a bit concerning. We should be pushing for more EV adoption in the last-mile transport sector, not less.
R
Rohit P
Scooter sales up 36.9%! That's massive. Shows how important affordable personal mobility is for India's youth and working class. The roads in my city are getting more crowded by the day, but it's a sign of prosperity.
S
Sarah B
As someone who recently moved to Delhi, the traffic is intense but the choice of vehicles is impressive. The growth in three-wheelers for transport is key for cities. Hope infrastructure keeps pace with these sales figures!
V
Vikram M
Good numbers, but let's not forget the pollution angle. Every new vehicle sold should meet the strictest emission norms. Growth is good, but it must be green growth. The government should offer more incentives for electric two and three-wheelers.
K
Karthik V
This is a direct result of stable policies and the PLI scheme. When manufacturing gets a boost, the entire ecosystem benefits. Jai Hind! 🇮🇳 Now we need to focus on becoming a global export hub for automobiles.

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