February 2026 Auto Retail Sales Jump 26%; Tractors Lead Segment Growth

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Auto Retail Sales Soar 26% in Feb; Tractors Lead Growth, Dealer Outlook Positive

Auto Retail Sales Soar 26% in Feb; Tractors Lead Growth, Dealer Outlook Positive

C

CNBC TV18•05-03-2026, 11:44

Auto Retail Sales Soar 26% in Feb; Tractors Lead Growth, Dealer Outlook Positive

•Indian auto retail sales surged 26% year-on-year in February, reaching 2,409,362 units, extending momentum post-GST 2.0.
•Tractors recorded the fastest growth at 36.35%, while two-wheelers, three-wheelers, passenger vehicles, and commercial vehicles also saw significant increases.
•Passenger vehicle sales rose 26.12%, driven by strong rural demand (34.21% growth) and continued popularity of SUVs and utility vehicles.
•Dealer sentiment remains highly positive, with 75.51% expecting growth in March, supported by festivals and financial year-end buying.
•Improved rural liquidity, affordability, new product launches, and infrastructure demand fueled growth across segments, as per FADA President C. S. Vigneshwar.

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The India–US trade deal
underscores how geographic revenue exposure will shape stock-specific outcomes in the auto and auto ancillary space. Companies with higher US dependence stand to benefit more from tariff relief, while diversified players gain stability. However, $8.3 billion of India’s exports to the US still face Section 232 tariffs, including automobiles ($3.9 billion), steel ($2.5 billion), aluminium ($800 million), timber ($370 million), copper ($547 million) and trucks & ships ($146 million), which remain subject to national security provisions—keeping risks in play despite broader tariff cuts.

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Representational image (Image: News18)

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