Passenger vehicle, two-wheeler dispatches record highest-ever January sales

Double-digit growth in passenger vehicles and two-wheelers driven by post-GST momentum, strong rural cash flows, export growth and sustained demand visibility

Passenger vehicle (PV) and two-wheeler dispatches have posted their highest-ever January sales, recording double-digit growth, indicating the momentum post-GST rationalisation has not been derailed.

 

PV sales grew by 12.6 per cent to 449,616 units in January, while two-wheeler sales rose 26.2 per cent year-on-year (YoY) to 1,925,603 units. Two-wheeler dispatches were led by scooters, which saw a 37 per cent rise, compared to 20 per cent growth in motorcycles. Motorcycles, however, are a larger volume segment, accounting for more than 58 per cent of overall two-wheeler sales.

 

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

   

Three-wheelers witnessed strong growth of 30.2 per cent compared to January of the previous year, with sales of 75,725 units.

 

“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.”

 

For the April–January period, PV exports grew by 17.6 per cent YoY to 747,752 units, while two-wheeler exports grew by 23.7 per cent. PV exports were led by Maruti Suzuki India and Hyundai Motor India, which exported 358,953 units and 162,458 units, respectively. Some PV original equipment manufacturers (OEMs), such as Honda Cars India, saw their exports shrink from 50,866 units in the previous year to 22,451 units in the first 10 months of FY26.

 

Major two-wheeler OEMs posted growth in exports in the first 10 months despite geopolitical uncertainties and a rare-earth magnet shortage. Bajaj Auto, Hero MotoCorp, Honda Motorcycle and Scooter India, Royal Enfield and TVS Motor saw a rise in exports during this fiscal.

 

On the retail front too, sales growth remained robust in January.

 

Driven by a stellar show in the rural market, passenger vehicle retail sales for January zoomed 7.22 per cent to 513,475 units versus the same month last year, according to data shared by the Federation of Automobile Dealers Associations (FADA) on Tuesday.

 

The growth was powered by continued post-GST momentum, healthy rural cash flow on the back of harvest and weddings, and sustained demand visibility across mobility and freight.

 

“This reinforces the structural expansion of PV demand beyond the top cities, aided by a strong SUV/compact-SUV preference, revival of entry-level cars, product availability and continued schemes. Crucially, PV inventory levels continued to soften to 32–34 days, which is a constructive indicator of healthier channel discipline and improved working-capital efficiency across the network,” C S Vigneshwar, president, FADA, had said.

 

Passenger vehicles should see steady traction driven by a strong booking pipeline, new launches and variant excitement, and continued GST-led affordability, with incremental support from rural demand during the marriage season, industry insiders said.