Auto industry logs record January sales on GST-led demand, policy support

India’s automobile industry recorded its highest-ever January sales across passenger vehicles (PVs), two-wheelers and three-wheelers in 2026, with double-digit year-on-year (y-o-y) growth, supported by sustained demand following the GST rate reduction and momentum carried forward from the previous quarter.

According to official data from the industry body Society of Indian Automobile Manufacturers (SIAM), the PV domestic sales stood at 4,49,616 units in January 2026, up 12.6% y-o-y from 3,99,386 units in January 2025.

Category January 2026 January 2025 Growth
Total PVs 4,49,616 units 3,99,386 units 12.6%

Two-wheeler sales rose 26.2% y-o-y to 19,25,603 units in January 2026 from 15,26,218 units in the same month last year, while three-wheeler sales increased 30.2% y-o-y to 75,725 units during the month under consideration from 58,167 units in the year-ago month.

In the three-wheeler segment, passenger carriers rose 30.4% y-o-y to 60,881 units, while goods carriers increased 33.4% y-o-y to 13,374 units. E-rickshaw sales declined 7.9% y-o-y to 925 units, whereas e-cart sales grew 18.5% y-o-y to 545 units.

Category January 2026 January 2025 Growth
Passenger carrier 60,881 units 46,674 units 30.4%
Goods carrier 13,374 units 10,029 units 33.4%
E-rickshaw 925 units 1,004 units -7.9%
E-cart 545 units 460 units 18.5%
Total three-wheelers 75,725 units 58,167 units 30.2%

Among two-wheelers, scooter sales climbed 36.9% y-o-y to 7,50,580 units. Motorcycles rose 20.3% y-o-y to 11,26,416 units, and mopeds increased 16.1% y-o-y to 48,607 units.

Category January 2026 January 2025 Growth
Scooters 7,50,580 units 5,48,201 units 36.9%
Motorcycles 11,26,416 units 9,36,145 units 20.3%
Mopeds 48,607 units 41,872 units 16.1%
Total two-wheelers 19,25,603 units 15,26,218 units 26.2%

The total production of PVs, three-wheelers, two-wheelers and quadricycles in January 2026 was 29,27,394 units, SIAM said.

“Passenger vehicles, two-wheelers and three-wheelers posted their highest ever sales of 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,” he added.

The Union Budget 2026 has outlined a broad policy push for the automobile industry, with measures spanning electric vehicle (EV) supply chains, localisation of critical components, battery manufacturing, demand-side incentives and sustained public capital expenditure.

Source from: https://www.moneycontrol.com/automobile/auto-industry-logs-record-january-sales-on-gst-led-demand-policy-support-article-13827316.html

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