Auto sales in February 2026 stood at 17,121 units, rising a robust 42% YoY but down 26% MoM. Volumes, on a YoY basis, continue to grow strongly amid sectoral tailwinds. The sequential decline, however, largely reflects a high-base effect, as deferred consumer demand ahead of new model launches boosted sales in January. Passenger car sales increased 51% YoY to 13,388 units, while LCVs and the pickup segment posted a modest growth of 17% YoY to 3,733 units. The momentum in Truck sales also continued (volumes up 40% YoY), while Tractor sales increased by 12% YoY. ATLH’s 2-wheeler sales jumped 26% YoY (vs the segment’s 24% YoY growth), to 136,001 units, translating into a market share of 85%, according to a report by IMS Research.
§ INDU: Indus Motors recorded a growth of 46% YoY, selling 3,817 units in Feb’26. Meanwhile, the sales dropped 25% MoM, mainly due to the January effect. The Corolla, Yaris and Cross portfolio posted a robust 70% YoY growth to 3,102 units, while the Fortuner and Revo segment declined 10% YoY to 715 units, mainly due to increased competition from the launch of Chinese brands in this segment. Overall, the company’s market share remained flat at 22%.
§ HCAR: Honda lagged behind the industry sales, selling 2,114 units in Feb’26, up 3% but down 42% YoY. In its sedan segment, Civic and City declined 1% YoY, while the SUV segment posted a healthy 42% YoY growth, recording 253 units sold in Feb’26. HCAR’s market share dropped by 47 basis points YoY to 12% in Feb’26.
§ SAZEW: Sazgar recorded a sale of 1,682 units, up a sharp 90% YoY in Feb’26. Sequentially, however, the sales dropped 16% MoM, mainly due to the January effect. Moreover, SAZEW’s three-wheeler sales remained flat, selling 2,704 units during the month.
§ Tractor: Tractor sales saw a sharp 31% sequential decline to 1,717 units this month as deliveries for the Punjab tractor scheme neared completion. With the scheme’s impact subsiding, sales volumes are now normalising. MTL remains the market leader, maintaining a 61% market share.
§ Trucks: Truck segment’s growth continues, with volumes up 40% YoY in Feb’26, to 582 units. GHNI posted a 61% YoY growth, while sequentially sales dropped sharply by 46% MoM to 450 units. Meanwhile, GAL’s volume doubled YoY (flat MoM) to 275 units.
Auto volumes continue to benefit from supportive sectoral tailwinds. While near-term momentum remains encouraging, the sector faces key overhangs, including pending regulatory clarity on the New Energy Vehicles (NEV) policy and intensifying competition from Chinese OEMs. That said, the ongoing Middle Eastern conflict could also pose supply-side risks, potentially disrupting key shipping routes and creating challenges for local assemblers in procuring CKD kits from global partners.
