Wholesale and retail volumes saw a strong sequential and year-on-year (YoY) growth in January 2026, aided by the sustained positive impact of GST rate cuts, winter wedding season and new model launches. For FY2026, ICRA expects industry volumes to grow by 5-7% (6.7% YoY wholesale volume growth in 10M FY2026) led by a sustenance in demand momentum.

• Wholesale volumes increased by 12% YoY to 4.5 lakh units in January 2026, as original equipment manufacturers (OEMs) ramped up production to cater to the robust domestic demand. On a sequential basis, wholesale dispatches grew by 14%, with production in December 2025 having been partly curtailed due to annual maintenance shutdowns.
• Retail sales recorded 7% YoY growth in January 2026 despite an elevated base, supported by the winter wedding season, new model launches and sustained positive impact of the revised Goods and Services Tax (GST) rates. Overall wholesale volume growth in 10M FY2026 has been 6.7% YoY, while retail volumes grew by 8.0%.