Auto industry logs record January sales on GST-led demand, policy support

January 2026 auto sales in India.

• India auto industry hits record January sales in 2026.
• Vehicle sales experience double-digit growth.
• GST rate cut and policy support drive strong market demand.

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India's automobile industry recorded its highest-ever January sales across passenger vehicles (PVs), two-wheelers and three-wheelers in 2026, with double-digit year-on-year (y-o-y) growth, supported by sustained demand following the GST rate reduction and momentum carried forward from the previous quarter.

According to official data from the industry body Society of Indian Automobile Manufacturers (SIAM), the PV domestic sales stood at 4,49,616 units in January 2026, up 12.6% y-o-y from 3,99,386 units in January 2025.

Two-wheeler sales rose 26.2% y-o-y to 19,25,603 units in January 2026 from 15,26,218 units in the same month last year, while three-wheeler sales increased 30.2% y-o-y to 75,725 units during the month under consideration from 58,167 units in the year-ago month.

In the three-wheeler segment, passenger carriers rose 30.4% y-o-y to 60,881 units, while goods carriers increased 33.4% y-o-y to 13,374 units. E-rickshaw sales declined 7.9% y-o-y to 925 units, whereas e-cart sales grew 18.5% y-o-y to 545 units.

Among two-wheelers, scooter sales climbed 36.9% y-o-y to 7,50,580 units. Motorcycles rose 20.3% y-o-y to 11,26,416 units, and mopeds increased 16.1% y-o-y to 48,607 units.

The total production of PVs, three-wheelers, two-wheelers and quadricycles in January 2026 was 29,27,394 units, SIAM said.

"Passenger vehicles, two-wheelers and three-wheelers posted their highest ever sales of January in 2026, with double-digit growth, compared to January 2025," said Rajesh Menon, Director General, SIAM.

"The new year has begun on a positive note, extending the strong momentum seen in the previous quarter, supported by sustained demand following the GST rate reduction. The initiatives announced in the Union Budget 2026 to strengthen India's manufacturing base, along with existing policy tailwinds, are expected to deliver long-term benefits for the sector and support growth in the medium term," he added.

The Union Budget 2026 has outlined a broad policy push for the automobile industry, with measures spanning electric vehicle (EV) supply chains, localisation of critical components, battery manufacturing, demand-side incentives and sustained public capital expenditure.