Two-wheeler and SUV sales jump 26% in auto sales in February

Domestic automobile retail sales witnessed a strong rebound in February, growing at a faster year-on-year pace as demand improved across most vehicle segments. According to data released by the Federation of Automobile Dealers Association (FADA), total retail sales reached 24,09,362 units in February 2026, compared to 19,17,934 units in the same month last year. PTI reported that this is an increase of 25.62 percent.The dealers’ organization said this expansion is visible in almost all segments of the market. Five of the six vehicle categories: two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and tractors, recorded the highest ever retail sales in February, indicating strong consumer demand and improved market sentiment.The largest share in retail sales was of two-wheelers. The segment recorded sales of 17,00,505 units in February, up from 13,60,155 units a year ago, showing a growth of nearly 25 percent. Dealers attributed the growth to improved rural liquidity following favorable crop results, better affordability following the GST transition and attractive promotional schemes offered by manufacturers.A good growth was also recorded in the sales of passenger vehicles during the month. Retail sales increased to 3,94,768 units as compared to 3,13,015 units in February 2025, showing a growth of about 26 per cent year-on-year. FADA said demand remained strong in both urban and rural markets, with urban sales growing by 21 per cent while rural markets saw a sharp jump of 34 per cent. Rural demand in particular has helped boost small car sales, even as SUVs and utility vehicles continue to dominate overall sales.Looking ahead, FADA said the near-term outlook remains cautiously optimistic. Festive demand and financial year-end shopping are expected to support retail momentum in March, although the industry may gradually transition from a sharp rebound phase to a more steady and stable growth cycle in the coming months. Input from PTI.