India’s passenger vehicle market recorded strong growth in February 2026, with registrations reaching 413,300 units, marking a 33.8% year-on-year increase, according to the latest Retail Market Pulse report released by JATO Dynamics.
The data highlights continued momentum in the Indian automotive sector, supported by improved vehicle supply, strong consumer demand, and steady buyer sentiment across key vehicle segments.
Strong Demand Fuels Market Growth
Commenting on the latest figures, Ravi Bhatia said the market continues to show encouraging signs of recovery and growth.
“Last month’s results reflect continued consumer demand and healthy retail activity across key segments. We are seeing sustained recovery in the market as manufacturers benefit from improved supply, strong product pipelines, and steady buyer sentiment,” Bhatia said.
Despite the strong year-on-year growth, passenger vehicle registrations declined on a month-on-month basis, falling from 520,300 units in January 2026 to 415,300 units in February. Analysts attribute this drop to typical seasonal trends that often follow a strong start to the year.
Bhatia noted that such corrections are normal and do not indicate weakening demand.
“This easing is consistent with seasonal trends that typically follow a strong start to the calendar year. Despite the MoM dip, overall retail momentum remains healthy, supported by steady demand across key segments and stable inventory levels,” he added.
Maruti Suzuki Maintains Market Leadership
In terms of manufacturer rankings, Maruti Suzuki continued to dominate the Indian passenger vehicle market.
The company registered 164,930 vehicles in February, representing a 36.95% increase compared with the same month last year.
Tata Motors secured second place with 60,201 registrations, posting an impressive 52.37% year-on-year growth and gaining 1.8 percentage points in market share.
Completing the top five were:
- Mahindra & Mahindra with 56,517 units
- Hyundai Motor India with 48,671 units
- Toyota Kirloskar Motor with 28,012 units
Other brands also recorded strong growth. Kia India reported a 37.09% increase in registrations, while the Volkswagen Group recorded a 19.91% rise.
However, some manufacturers experienced declines in registrations. These included Honda Cars India (-4.86%), Nissan Motor India (-0.92%), and Jaguar Land Rover (-1.36%).
SUVs Continue to Dominate Market
The report highlights the growing popularity of sport utility vehicles (SUVs) in India, which accounted for 55.4% of all passenger vehicle registrations in February.
Compact hatchbacks remained the second most popular vehicle category, representing 25.2% of the market.
Among individual models, Tata Motors dominated the rankings. The Tata Punch emerged as the most registered model with 18,594 units, followed by the Tata Nexon with 17,106 units.
The Maruti Suzuki Baleno secured the third position with 15,139 registrations.
Meanwhile, the Maruti Suzuki Wagon R, which ranked second in January, dropped out of the top ten list in February. It was replaced by the Hyundai Venue, which entered the ranking in ninth place with 11,048 units.
Petrol Continues to Lead Powertrain Mix
Petrol-powered vehicles remained the dominant choice among Indian car buyers, accounting for 54% of all registrations in February.
Diesel vehicles followed with 19% market share, while electric vehicles (EVs) maintained a relatively small but stable presence at 4% of total registrations.
The data indicates that while EV adoption is gradually increasing, conventional powertrains still dominate the Indian passenger vehicle market.
Urban Markets Drive Sales Growth
Geographically, urban areas recorded the highest number of vehicle registrations, with 249,994 units sold, representing a 37.52% year-on-year increase.
Metro cities accounted for 99,700 units, posting a 22.28% growth compared with February 2025.
Rural markets also showed strong momentum with 65,637 registrations, reflecting a 39% year-on-year increase. However, rural registrations were lower than the 87,640 units recorded in January, indicating a slowdown from the start of the year.
Outlook for the Indian Auto Market
Industry analysts believe the strong February performance reflects the continued resilience of the Indian automotive sector. Improved supply chains, expanding product offerings, and stable consumer confidence have helped maintain strong retail activity.
With SUVs continuing to dominate consumer preferences and manufacturers expanding their portfolios with new models and technologies, the Indian passenger vehicle market is expected to maintain steady growth through 2026.
According to JATO Dynamics, ongoing monitoring of regional demand patterns, powertrain shifts, and evolving consumer preferences will remain critical for automakers seeking to capitalize on India’s rapidly expanding automotive market.
