Cars, 2-wheelers hold pace in Feb on GST tailwind

Car and two-wheeler sales—counted as factory dispatches—rose at most manufacturers at a brisk pace in February from a year earlier. It was the fifth straight month of sales growth after the government cut goods and services tax (GST), making automobiles more affordable across segments.

The growth in February was led by homegrown Tata Motors and Mahindra & Mahindra, showed monthly sales data issued by individual automakers on Sunday. Overall, the industry is estimated to have dispatched 4,20,000–4,25,000 units in February, up from 3,81,665 units a year ago, reflecting healthy double-digit growth.

Market leader Maruti Suzuki reported domestic passenger vehicle sales of 1,61,000 units last month, marginally rising from 1,60,791 units a year earlier. Partho Banerjee, senior executive officer, sales and marketing, said the company is operating its factories at more than 100% of the rated annual production capacity of 2.4 million units or about 200,000 cars per month to meet sustained demand.


Total sales, including exports, touched 214,000 units in February, a record for the month, even as dealer network stock remained lean at around 12 days. A new production line is expected to be commissioned in April in Kharkhoda, Haryana, which should help ease supply constraints in the coming months.

Tata Motors clocked a 34% year-on-year jump in domestic sales to 62,329 units, aided by strong demand for its SUVs and electric vehicles.

Mahindra & Mahindra continued its momentum with a 19% rise in domestic sales to 60,018 units, driven by robust bookings for its utility vehicles.

Among multinational carmakers, Hyundai Motor India posted domestic sales of 52,407 units, up 9.8% year-on-year, marking its highest-ever February tally in India. Exports at the Korean carmaker also rose to 13,727 units, up 25% YoY.

Toyota Kirloskar Motor reported a 16% increase in domestic dispatches to 30,737 units, benefiting from sustained demand for hybrid models.

Kia India registered domestic sales of 27,610 units, a growth of 10% over the year-ago month, supported by traction in the compact and mid-SUV segments.

Industry executives said rural recovery, sustained SUV preference, and improved supply conditions underpinned demand in February, with competition expected to intensify further in the new fiscal year.

As per rating agency Icra, car dispatches will rise 5-7% in FY26 due to GST-led price relief, stable replacement demand, and the continuing trend of personal vehicle usage.

Two-wheeler sales also rose at a fast clip. Market leader, Hero MotoCorp, dispatched 558,216 units during the month, up 44% compared to 357,296 units, during the same period last year. Likewise, TVS and Royal Enfield also gained. While TVS sales grew 13% to 365471 units, Royal Enfield’s sales climbed up 13% to 91248 units year on year.