India’s retail vehicle sales jump 25.62% to 24.09 lakh units in February

New Delhi- India’s retail vehicle sales recorded a strong 25.62 per cent year-on-year growth in February, reaching 24.09 lakh units and surpassing the previous best February sales recorded in 2024, according to the Federation of Automobile Dealers Associations (FADA).

The growth was seen across most vehicle segments. On a yearly basis, two-wheeler sales increased by 25.02 per cent, three-wheelers by 24.39 per cent, passenger vehicles by 26.12 per cent, and commercial vehicles by 28.89 per cent, indicating robust demand in both personal mobility and business-related transportation.

FADA said dealer sentiment for March remains largely optimistic. Around 75.51 per cent of dealers expect sales to grow further, while 19.90 per cent foresee a stable market and only 4.59 per cent anticipate a decline.

The tractor segment posted the highest growth during the month, registering a sharp 36.35 per cent increase and emerging as the fastest-growing category in February.

Construction equipment was the only segment that did not set a new February record, recording a marginal year-on-year decline of 1.22 per cent.

“Overall, the strong performance during the month indicates that policy-led confidence in the market, particularly after the introduction of GST 2.0, is translating into sustained demand across multiple vehicle segments,” FADA said.

Retail sales of two-wheelers continued their strong momentum, touching 17,00,505 units, up 25.02 per cent year-on-year. Dealers attributed the growth to improved rural liquidity following good crop outcomes, attractive marketing schemes and better affordability after GST revisions.

Commercial vehicle retail sales stood at 1,00,820 units in February, reflecting a strong 28.89 per cent annual growth. Dealers across regions reported improved freight availability, steady e-commerce activity and infrastructure-driven demand supporting fleet expansion.

Passenger vehicle retail sales reached 3,94,768 units, marking a 26.12 per cent year-on-year increase. Growth remained broad-based, with urban markets expanding by 21.12 per cent, while rural markets surged 34.21 per cent, indicating strong demand beyond metropolitan areas.

The report noted that the sharper rise in rural demand is particularly encouraging, as it is boosting sales of small cars, even as SUVs and utility vehicles continue to drive overall passenger vehicle volumes.

With inputs from IANS