PV retails rise 7.22% to 5.13 lakh units in January 2026 as rural India drives growth: FADA

Passenger vehicle (PV) retail sales rose 7.22 per cent year-on-year to 513,475 units in January 2026, led by a sharp acceleration in rural demand, according to data released on Tuesday by the Federation of Automobile Dealers Associations (FADA). While cities continued to dominate volumes, non-metro India emerged as the key growth engine for the segment during the month.

Rural markets outpace cities in PV growth

Urban markets accounted for about 59.2 per cent of PV retails, with rural areas contributing 40.8 per cent. However, growth in rural India far outpaced cities, with rural PV sales rising 14.43 per cent year-on-year, compared with a modest 2.75 per cent expansion in urban markets. The trend underscores a widening demand base for passenger vehicles beyond the top metros.

“This reinforces the structural expansion of passenger vehicle demand beyond the top cities,” said C.S. Vigneshwar, president, FADA. “A strong preference for SUVs and compact SUVs, revival of entry-level cars, improved product availability and continued schemes are supporting demand, particularly in non-metro India.”

FADA also flagged improving channel health, noting that passenger vehicle inventory levels softened to around 32–34 days in January, a constructive indicator for dealer working capital and supply-demand balance.

Tight race for No. 2 spot among carmakers

Among automakers, Maruti Suzuki retained its leadership with retail sales of 216,043 units, translating into a market share of around 42 per cent. Competition for the second position intensified, with Hyundai Motor India emerging as the second-largest player during the month with 65,914 units and a 12.84 per cent share, closely followed by Tata Motors at 63,558 units (12.38 per cent) and Mahindra & Mahindra (M&M) at 63,366 units (12.34 per cent).

Auto, two-wheeler sales also shoot up

Overall automobile retail sales across segments rose 17.61 per cent year-on-year to 2.72 million units in January, aided by healthy rural cash flows from harvests and weddings, and sustained demand across mobility and freight.

Two-wheelers continued to provide volume momentum to the broader market, with retail sales rising 20.82 per cent year-on-year to 1.85 million units. Rural India accounted for about 56 per cent of two-wheeler volumes, while urban markets contributed 44 per cent.

Rural two-wheeler sales grew 19.77 per cent, supported by festival and marriage-season demand, while urban markets posted a sharper 22.19 per cent rise, signalling demand normalisation beyond festive-only buying.

February–March outlook remains constructive

Looking ahead, FADA said passenger vehicles are expected to see a strong February–March run, backed by booking pipeline strength, new model activity and financial year-end purchases, even as election-related disruptions and model-specific supply constraints remain key watchpoints.