A fresh report from ICRA forecasts a 5-7% uptick in India’s passenger vehicle wholesale sales for fiscal 2026, driven by favorable market dynamics. Key boosters include persistent demand, slashed GST rates, and innovative new launches captivating buyers.
The sector kicked off the year strong: January wholesale sales for passenger vehicles climbed 14% sequentially, reflecting heightened production to meet burgeoning domestic needs. Year-on-year, retail sales advanced 7%, while wholesale volumes swelled 12% to around 4.5 million units.
‘Continued demand surge, GST relief, wedding season frenzy, and new model rollouts propelled robust domestic growth in both two-wheeler and passenger vehicle segments in January 2026,’ the report notes.
Across all vehicles, January wholesale sales grew 6.7% annually, with retail up 8%. Two-wheelers led the charge, with wholesale dispatches up 25% to 1.8 million units. For FY26’s April-January period, total wholesale growth measured 6.7%.
Retail two-wheeler sales exploded 20.8% year-on-year in January, thanks to harvest festival demand, matrimonial shopping sprees, and improved affordability. ICRA projects 6-9% annual growth for domestic two-wheelers in FY26, aided by replacement cycles, urban spending revival, and rural prosperity.
Electric two-wheelers registered 123,012 retail units in January, a 25.3% jump from last year, underscoring the green shift in mobility.
This positive trajectory positions India’s auto industry for a vibrant FY26, with manufacturers poised to capitalize on these tailwinds amid a recovering economy.