India’s passenger vehicle market continued its growth momentum in February 2026, posting healthy year-on-year gains despite a sequential slowdown compared to January.
Total passenger vehicle dispatches stood at 4,20,613 units in February 2026, compared to 3,80,691 units in February 2025 reflecting a robust 10.5% year-on-year growth. This underscores steady underlying demand across segments, even as market dynamics continue to evolve. However, on a month-on-month basis, volumes declined 7.1% from January 2026’s 4,52,589 units, indicating typical post-January normalization and possible inventory adjustments.
February is traditionally a transitional month before fiscal year-end in March, where discounts and corporate/fleet purchases typically increase. While the month did not witness aggressive growth due to the absence of festive triggers and a shorter calendar cycle, leading automakers maintained healthy dispatch numbers as the industry heads toward the fiscal year-end in March. With March marking the final month of FY2026, automakers are expected to push for higher dispatches to meet annual targets.
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Maruti Suzuki retained its top position with 1,61,000 units, registering flat 0.1% YoY growth. However, market share fell sharply from 42.2% to 38.3%, a 4 percentage point drop. Month-on-month volumes declined 7.8%, signaling increasing competitive pressure.
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Tata emerged as one of the biggest gainers, posting 34.2% YoY growth with sales of 62,329 units. Market share expanded significantly from 12.2% to 14.8% (+2.6pp). Despite an 11.2% MoM dip, Tata continues to strengthen its position in the SUV and EV space.
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Mahindra recorded 19% YoY growth, selling 60,018 units, and improved its market share to 14.3% (+1pp). While February volumes dipped 5.5% sequentially, the brand continues to benefit from strong SUV demand.
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Hyundai posted 9.8% YoY growth at 52,407 units, but market share remained flat at 12.5%, slightly down by 0.1pp. A sharp 11.3% MoM decline suggests competitive intensity in the mid-size and compact SUV segments.
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Toyota grew 16.4% YoY to 30,737 units, marginally increasing market share to 7.3%. Kia delivered steady 10.3% YoY growth, maintaining a 6.6% market share.
