India saw a significant 25.62% year-on-year growth in retail vehicle sales in February, totaling 24.09 lakh units, as reported by the Federation of Automobile Dealers Associations (FADA). This growth was widespread, with increases in the two-wheeler segment by 25.02%, three-wheelers by 24.39%, passenger vehicles by 26.12%, and commercial vehicles by 28.89%. FADA predicts a positive dealer sentiment for March, with 75.51% expecting growth.
Tractors experienced a remarkable 36.35% growth, emerging as the fastest-growing category in February. However, construction equipment saw a slight decline of 1.22% year-on-year. FADA attributes this strong performance to policy-led market confidence, especially post GST 2.0, translating into sustained demand across various vehicle segments.
Two-wheeler retail sales continued their robust performance, reaching 17,00,505 units, up by 25.02%. Improved rural liquidity, successful crop outcomes, attractive marketing schemes, and better affordability post-GST revisions were cited as factors driving this growth. Commercial vehicle retail sales in February reached 1,00,820 units, marking a strong 28.89% year-on-year increase. Dealers noted enhanced freight availability, steady e-commerce activity, and infrastructure-related demand supporting fleet expansions.
Passenger vehicle retail sales totaled 3,94,768 units, showing a robust 26.12% year-on-year growth. Urban markets grew by 21.12%, while rural markets surged by 34.21%, indicating sustained demand beyond metropolitan areas. The report highlights the encouraging growth in rural areas, particularly supporting small car sales, alongside SUVs and utility vehicles driving overall volumes.
