The Indian automotive industry has begun 2026 on a historic high, registering its strongest-ever January retail performance. Domestic vehicle sales across segments—including passenger vehicles (PVs), two-wheelers and commercial vehicles—crossed 2.72 million units in January, according to Vahan data (excluding Telangana).
This marks the highest January retail sales post-pandemic, surpassing the 2.32 million units recorded in January 2025, as per government data. The robust momentum is being driven by a favourable policy environment following the GST cut in September 2025, income tax rebates, and steady underlying demand across vehicle categories.
Passenger Vehicles Hit New Highs
Passenger vehicle retail sales stood at around 4.55 lakh units in January, according to Maruti Suzuki India’s Senior Executive Officer (Marketing & Sales), Partho Banerjee. Several automakers recorded all-time highs and strong year-on-year growth, including Maruti Suzuki, Tata Motors, Mahindra & Mahindra and Hyundai Motor India.
OEM Rankings: January 2026 (Domestic Sales)
- Maruti Suzuki India: 185,943 units
- Tata Motors Passenger Vehicles: 70,222 units
- Mahindra & Mahindra: 63,510 units
- Hyundai Motor India: 59,107 units
- Toyota Kirloskar Motor: 30,630 units
Maruti Suzuki: Volume Leader, Cost Pressures Loom
India’s largest carmaker, Maruti Suzuki India, retained its leadership position with 185,943 domestic units, marginally up from 185,151 units a year ago. While domestic growth remained flat, the company reported an all-time high total sales volume of 236,963 units, including exports and OEM supplies. Bookings rose sharply by 25 per cent.
However, the company signalled potential price increases in the coming months amid rising input costs. “Commodity prices, especially precious metals, have risen sharply. We are closely monitoring the situation amid ongoing geopolitical uncertainties. Once conditions stabilise, we will review a potential price increase,” Banerjee said during the post-monthly business update call.
Tata Motors PV Climbs to Second Spot
Tata Motors Passenger Vehicles moved up to second place, posting a strong 46.1 per cent year-on-year growth with 70,222 units sold. January also marked Tata’s best-ever monthly sales for the Nexon and Punch, which clocked around 23,000 units and 19,000 units, respectively—reinforcing the brand’s stronghold in the compact SUV segment.
Mahindra & Mahindra Maintains SUV Momentum
Mahindra & Mahindra secured third position with 63,510 units, up 25 per cent from 50,659 units last year. The company reported strong traction for its SUV portfolio, supported by recent booking openings for the XUV 7XO and XEV 9S.
Mahindra has recorded 93,689 bookings, translating into a booking value of approximately ₹20,500 crore.
“Building on the strong momentum of last year’s performance, we began 2026 on a strong note with SUV sales of 63,510 units and LCV <3.5T sales of 27,656 units. Total vehicle sales stood at 104,309 units, a 24 per cent year-on-year growth,” said Nalinikanth Gollagunta, CEO, Automotive Division, M&M.
Hyundai Records Best-Ever Monthly Sales
Hyundai Motor India ranked fourth with 59,107 domestic units, marking its highest-ever monthly domestic sales. The automaker also posted total sales (domestic + exports) of 73,137 units, up 11.5 per cent year-on-year, securing second place overall.
The Venue and Aura achieved their highest-ever monthly sales at 12,413 units and 7,978 units, respectively. Export volumes grew sharply by 20.9 per cent to 14,030 units.
“January 2026 marks a defining chapter in Hyundai Motor India’s journey. These results reflect the collective strength of our people, partners and customers,” said Tarun Garg, MD & CEO, HMIL.
Toyota, MG Continue Steady Growth
Toyota Kirloskar Motor held on to fifth position, selling 30,630 units, up from 26,178 units a year earlier. Meanwhile, JSW MG Motor India reported 9 per cent year-on-year growth, supported by demand for the MG Windsor EV and Hector SUV.
Industry Outlook: Optimism with Caution
While industry sentiment remains positive—especially around GST reforms—automakers remain cautious about sustaining growth amid rising raw material costs and geopolitical uncertainty.
“GST 2.0 could help the industry return to a 6–7 per cent CAGR, but cost pressures mean we need to wait and watch before making firm forecasts,” Banerjee cautioned.
Although the Union Budget presented on February 1 did not include direct, sector-specific announcements for automobiles, industry leaders believe continued public capital expenditure on roads, logistics, ports and urban infrastructure will support long-term demand.
Executives also highlighted that deeper localisation of EV components, electronics, batteries and rare-earth supply chains has become a strategic priority to reduce import dependence and strengthen domestic value addition.
