Indian Auto Industry Sees Record Sales In January 2026

Gyan Prakash

What a start it has been for the Indian auto federation, where it has posted an all-time high domestic sale in the very first month of 2026, clocking more than 27,20,881 units across segments (passenger vehicles, commercial vehicles, two-wheelers and more), as per Vahan data (excluding Telangana).

The fact that the GST cut late last year, in September 2025, did the trick and created a favourable environment led to the growth momentum, also the income tax rebate, and the steady demand in the automotive market were add-on factors. The January sales figures recorded have been the highest post-pandemic (2022). As per government data, 23,21,692 units were sold till last year.

A report by ET Auto mentions Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India, stating that the overall passenger vehicle industry has reported around 4,55,000 units last month. Multiple all-time highs and strong deliveries for the automakers that include Hyundai Motor India, Tata Motors and Mahindra and Mahindra have been observed.

India’s largest automaker, Maruti Suzuki India, reported near to no change in sales growth with 185,932 units sold, up from 185,151 units. However, its overall sales (PV+LCV+OEM+Exports) touched an all-time high of 2,36,963 units. On a positive note, the company also reported a 25 per cent rise in bookings. It indicated that the Indian auto giant may consider a price hike in the coming months due to rising raw material costs, amidst relentless pressure on key commodities such as aluminum, platinum, copper and rare-earth elements.

According to Banerjee, commodity prices, especially precious metals, have risen drastically. The situation is being monitored amid ongoing geopolitical developments. Once conditions normalise, a potential price increase will be reviewed.

Coming second, Tata Motors Passenger Vehicles reported a strong YoY growth of 46.1 per cent, selling 70,222 units in the opening month this year. January turned out to be a bumper period for Punch, making it the best-selling car. Nexon and Punch reported the strongest-ever monthly sales with 23,000 units and 19,000 units, respectively.

Grabbing the third spot, Mahindra and Mahindra reported a 25 per cent YoY increase, from 50,659 units to 63,510 units, in January 2026. Its new launches XUV7XO and XEV 9S, have clocked over 93,689 bookings, racking up a total booking of Rs 20,500 crore. Speaking on behalf of Mahindra and Mahindra, Nalinikanth Gollagunta, CEO, Automotive Division, M&M, mentioned that strong momentum of last year’s performance had made it possible to begin the year on an even stronger note by achieving SUV sales of 63,510 units, a growth of 25 per cent and LCV<3.5T sales of 27,656 units, a growth of 22 per cent. With 104,309 units sold, it stood with a 24 per cent YoY growth.

South Korean automaker Hyundai Motor grabbed fourth spot with 59,107 units. Significantly, the company reported its all-time high monthly sales and grabbed the second position in overall sales (domestic and exports) with 73,137 units sold in January 2026. The company reported that Venue and Aura achieved their highest monthly sales at 12,413 units and 7,978 units, respectively. The 20.9 per cent growth in exports to 14,030 units underlines the faith brand Hyundai continues to inspire in global markets as per Tarun Garg, MD & CEO, HMIL.

Toyota Kirloskar Motor, having secured the fifth position, sold 30,630 units in January 2026, up from 26,178 in January 2025.

JSW MG Motor India reported a 9 per cent year-on-year growth in January. It was mainly due to the high demand for its electric MG Windsor model and the SUV, Hector.

However, a word of caution has been thrown by the industry experts, where one needs to wait and watch before making firm forecasts, amidst rising commodity prices and geopolitical fluctuations. While the Union Budget on February 1 had no mention of the automobile sector, experts maintained that the broader macro and infrastructure push continues to promote sustained growth.