Auto sector races to record February on double-digit sales growth

New Delhi: Sales of cars, two-wheelers and three-wheelers rose in double-digits in February from a year earlier, as demand continued to remain strong after the GST cuts.

The numbers last month were the highest ever recorded for February, the (SIAM) said. The outlook is positive for March as the war in West Asia has not had any impact on consumer sentiment so far, it said.

February was the fifth straight month when the automobile industry posted robust growth in wholesale numbers. GST rates were cut effective September 22, making car and two-wheeler purchases more affordable across segments.

As per SIAM data released Friday, sales of passenger vehicles that comprise cars, utility vehicles and vans grew more than 10% from a year earlier to about 418,000 units. Sales of two-wheelers increased 35% to more than 1.87 million units in February, while three-wheeler sales expanded 29% to almost 75,000 units.

“Positive sentiments in the industry continue as passenger vehicles, two-wheelers and three-wheelers posted their highest ever sales of February in 2026, with double-digit growth, compared to February 2025,” SIAM director-general Rajesh Menon said. While most manufacturers expect demand in the local market to sustain due to continued impact of the tax cut, concerns have started surfacing over the effect of the West Asia crisis on consumer sentiments if the conflict prolongs. “While the month of March has festive drivers in several parts of the country, the recent conflict in West Asia remains a concern, both from the perspective of supply chain, which could impact the manufacturing processes, and exports. Industry would keep a close watch on evolving geopolitical developments,” Menon said.