Auto retail sales surge in India as February volumes cross 24 lakh units

New Delhi: India’s retail vehicle sales recorded a strong 25.62 per cent year-on-year growth in February, reaching 24.09 lakh units, according to data released by the Federation of Automobile Dealers Associations (FADA) on Thursday. The figure surpassed the previous record for the month set in February 2024, reflecting robust demand across multiple vehicle segments.

The growth was broad-based across the two-wheeler, three-wheeler, passenger vehicle and commercial vehicle segments, indicating sustained demand in both personal mobility and economy-linked transportation sectors.

According to FADA, two-wheeler retail sales rose by 25.02 per cent, while three-wheeler sales increased by 24.39 per cent during the month. Passenger vehicle sales grew by 26.12 per cent, and commercial vehicle sales registered the highest growth among major segments at 28.89 per cent year-on-year.

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The association said dealer sentiment for March remains largely optimistic, with 75.51 per cent of dealers expecting further growth in retail sales. Around 19.90 per cent anticipate a stable market, while only 4.59 per cent foresee a possible decline.

Among all categories, tractor sales emerged as the fastest-growing segment, registering a 36.35 per cent increase in February, signalling strong demand from the rural economy and agricultural sector.

However, the construction equipment segment was the only category that did not record a new February high, posting a marginal 1.22 per cent year-on-year decline, the report said.

FADA noted that the overall performance reflects improving market confidence and favourable policy conditions.

“Overall, the strong performance during the month indicates that the policy-led confidence in the market, particularly following GST 2.0, is now translating into sustained demand across multiple vehicle segments,” the association said.

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Two-wheeler sales lead volumes

Retail sales of two-wheelers reached 17,00,505 units in February, up 25.02 per cent year-on-year. Dealers attributed the surge to improved rural liquidity, favourable crop outcomes, attractive marketing schemes and improved affordability following GST revisions.

Commercial vehicle demand strengthens

Retail sales of commercial vehicles stood at 1,00,820 units, recording a 28.89 per cent increase compared to the same month last year. Dealers reported better freight availability, steady e-commerce activity and infrastructure-driven demand as key factors supporting fleet expansion.

Passenger vehicle sales driven by rural markets

Retail sales of passenger vehicles reached 3,94,768 units, marking a 26.12 per cent year-on-year increase. The growth remained broad-based, with urban markets expanding by 21.12 per cent, while rural markets surged 34.21 per cent, highlighting strong demand beyond major metropolitan centres.

FADA said the stronger rural growth is particularly encouraging, as it continues to support small car sales, even as SUVs and utility vehicles remain the primary drivers of overall passenger vehicle volumes in the Indian automobile market.

IANS