India’s automobile industry delivered a strong performance in February 2026, recording its highest-ever February sales across key vehicle segments. According to data released by the Society of Indian Automobile Manufacturers (SIAM), robust consumer demand and improving market sentiment drove double-digit growth in passenger vehicles, two-wheelers, and three-wheelers compared with the same month last year.

Strong Production Momentum in February
Vehicle production across major categories remained healthy during the month. The total production of Passenger Vehicles, Three-Wheelers, Two-Wheelers, and Quadricycles reached 28,64,612 units in February 2026, reflecting sustained manufacturing activity across the sector.

The production data indicates that automakers continued operating at strong capacity levels to meet rising demand from both urban and semi-urban markets. Higher production volumes also signal improved supply chain stability compared with the disruptions seen in previous years.

Passenger Vehicle Sales Reach Record February Level
Passenger vehicle (PV) sales stood at 4,17,705 units in February 2026, marking the highest sales ever recorded for the month of February. The segment posted 10.6% year-on-year growth compared with February 2025.

Strong demand for SUVs and premium models continued to support the segment’s growth. However, the data does not include domestic sales figures from several premium global brands, including BMW, Mercedes-Benz, Jaguar Land Rover, and Volvo Cars.

Industry data also shows that if sales from Tata Motors were excluded, the total passenger vehicle sales for February 2026 would stand at 3,55,376 units, highlighting the company’s significant contribution to the domestic market.

Two-Wheeler Segment Sees Sharp Demand Recovery
The two-wheeler segment delivered the strongest growth among all vehicle categories, with sales reaching 18,71,406 units in February 2026. This represents a 35.2% increase compared with February 2025.

The surge in two-wheeler demand was largely driven by improving rural income, easier financing options, and rising mobility needs. Entry-level motorcycles and scooters continued to witness strong demand, particularly in smaller towns and rural markets where two-wheelers remain the most affordable personal mobility option.

Three-Wheeler Sales Jump Nearly 30%
Three-wheelers also recorded impressive growth during the month. Sales reached 74,573 units in February 2026, reflecting a 29.0% year-on-year increase.

The strong performance of the segment highlights the continued recovery in urban transportation and last-mile connectivity services. Demand from the electric three-wheeler segment and expansion in shared mobility services also supported growth during the month.

Industry Sentiment Remains Positive
Commenting on the performance, Rajesh Menon, Director General of the Society of Indian Automobile Manufacturers, said the industry continues to witness positive momentum, with all major vehicle categories achieving their highest-ever February sales in 2026.

According to Menon, the strong performance reflects improving consumer confidence and steady economic activity across India.

Geopolitical Risks Remain a Key Concern
Despite the strong performance, the industry remains cautious about emerging global risks. The ongoing conflict in West Asia could potentially impact the automobile sector through supply chain disruptions and higher logistics costs.

Automakers are closely monitoring geopolitical developments, as prolonged disruptions could affect the availability of critical components and impact exports as well as domestic manufacturing operations.

Outlook for March and Beyond
Looking ahead, industry stakeholders expect continued demand momentum in March, supported by festive buying in several parts of the country and year-end purchase incentives offered by dealerships.

If demand trends remain stable and global supply chains remain largely unaffected, India’s automobile sector could maintain its growth trajectory in the coming months, reinforcing its position as one of the world’s fastest-growing automotive markets.