Rural surge powers Feb auto retail growth
Passenger vehicles, two-wheelers and commercial vehicles see strong demand amid GST impact
image for illustrative purpose
New Delhi: Domestic automobile retail sales surged 26 per cent year-on-year in February, extending the momentum seen after GST 2.0, with improved affordability and market confidence translating into broad-based growth across segments, the Federation of Automobile Dealers Associations (FADA) said on Thursday.
Overall retail sales last month rose to 24,09,362 units, compared with 19,17,934 units in February 2025, registering a 25.62 per cent increase.
“The growth was broad-based across almost all segments. Five out of six categories, two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and tractors, registered their highest-ever February retail volumes, clearly highlighting the strength of underlying demand in the market,” FADA President C S Vigneshwar said.
On a year-on-year basis, two-wheelers grew 25 per cent, three-wheelers 24 per cent, passenger vehicles 26 per cent, and commercial vehicles 29 per cent, reflecting healthy demand across both personal mobility and economic activity-driven segments.
Passenger vehicle retail sales rose to 3,94,768 units last month from 3,13,015 units a year earlier.
“The momentum remained broad-based with urban markets growing 21 per cent YoY while rural markets surged 34 per cent, indicating strong demand beyond metros,” Vigneshwar said. The sharper rural growth is encouraging as it supports small car sales, even as SUVs and utility vehicles continue to drive overall volumes.
Improved affordability following GST rationalisation, the marriage season, and healthy booking pipelines supported by new model introductions also aided demand.
Two-wheeler retail sales rose to 17,00,505 units in February from 13,60,155 units a year earlier. Dealers attributed the growth to improved rural liquidity following good crop outcomes, attractive marketing schemes and better affordability after GST revisions.
In the commercial vehicle segment, improved freight availability, steady e-commerce activity and infrastructure-linked demand supported fleet additions, although some regions reported supply constraints for certain models.
Commercial vehicle sales rose to 1,00,820 units from 78,219 units a year earlier. Three-wheeler and tractor retail sales stood at 1,17,130 units and 89,418 units, respectively.
FADA said the March outlook remains cautiously optimistic, with festive demand and year-end dynamics expected to support retail momentum.
