Auto demand stays firm as carmakers report higher February sales, strong retail momentum drive growth

Auto demand stays firm as carmakers report higher February sales, strong retail momentum drive growth

India’s automobile industry sustained its growth momentum in February, with leading carmakers reporting higher dispatches to dealers as steady consumer demand supported sales across passenger vehicles and utility segments.Leading automakers Maruti Suzuki, Tata Motors Passenger Vehicles, Mahindra & Mahindra and Hyundai posted an increase in vehicle dispatches last month, reflecting continued strength in the domestic market, PTI reported.Car market leader Maruti Suzuki India said its domestic passenger vehicle sales rose to 1,61,000 units in February compared with 1,60,791 units in February 2025.Sales in the mini car segment, comprising Alto and S-Presso, increased marginally to 10,238 units from 10,226 units a year earlier. However, the compact car category, including Baleno, Celerio, Dzire, Ignis, Swift and WagonR, declined to 66,386 units last month against 72,942 units in the year-ago period.Utility vehicle sales, covering Brezza, Ertiga, e-Vitara, Fronx, Grand Vitara, Invicto, Jimny, Victoris and XL6, rose to 72,756 units compared with 65,033 units in February 2025.Maruti Suzuki Senior Executive Officer for Marketing and Sales Partho Banerjee said the company has been calibrating production to reduce waiting periods across models.He noted that the automaker reported record sales of 2.14 lakhs in February while operating at over 100 per cent capacity, with a new manufacturing line expected to become operational in April and additional volumes likely from May onwards.“Domestic wholesales reached an all-time high of 1.64 lakh for the month of February, and retail sales grew by 12 per cent to 1.51 lakh units. Besides, the network stock is low at 12 days, with 7 days in transit,” he said.Banerjee added that the company’s mid-SUV sales have doubled from last year, increasing market share in the segment from 12.8 per cent to 19 per cent.Responding to a query on the impact of the ongoing war in the Middle East, Maruti Suzuki Senior Executive Officer Corporate Affairs Rahul Bharti said: “We are closely monitoring the situation. However, our exposure to the Middle East as an export region is not very high. This year it accounts for about 12.5 per cent of our total exports.”“In fact, as we export to nearly 100 countries, we have ensured that our portfolio is well diversified and inherently de-risked. It is in times like these that the depth of leadership truly comes through. We are not just increasing exports; we are expanding them in a broad-based manner, ensuring that we remain de-risked at the same time,” he added.Tata Motors Passenger Vehicles reported a 34 per cent rise in passenger vehicle dispatches at 62,329 units last month compared with 46,435 units in the year-ago period.Mahindra & Mahindra said domestic utility vehicle sales increased 19 per cent to 60,018 units in February against 50,420 units a year earlier.M&M CEO, Automotive Division, Nalinikanth Gollagunta said the February performance reflected “robust customer demand across the portfolio”.Hyundai Motor India reported a 10 per cent year-on-year rise in domestic sales to 52,407 units last month.The company’s MD and CEO Tarun Garg said, “We kicked off 2026 on a high note, achieving our highest-ever monthly sales in January, and the momentum continues in February”.Toyota Kirloskar Motor said domestic sales rose 16 per cent to 30,737 units compared with 26,414 units in February 2025.Executive Vice President, Sales-Service-Used Car Business, Sabari Manohar said demand remained strong across the company’s product portfolio.Kia India reported a 10 per cent increase in sales to 27,610 units last month against 25,026 units in February 2025.In the two-wheeler segment, Hero MotoCorp reported a 45 per cent year-on-year rise in dispatches to dealers at 5,16,968 units compared with 3,57,296 units.

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