The YoY growth in the ICRA Business Activity Monitor picked up to 10.0% in February 2026 (+6.4% in February 2025) from 8.9% in January 2026 (+10.6% in January 2025), partly supported by a favourable base. Notably, as many as 11 of the 16 constituent indicators saw an improvement in their YoY performance between these months. 

The auto-related indicators, including passenger vehicle (PV) output (to +9.8% from +5.6%), 2W output (to +24.9% from +16.3%), and vehicle registrations (+25.6% from +18.2%), recorded an improvement in their YoY growth in February 2026 vis-à-vis January 2026, amid healthy booking pipelines supported by new model launches, advancement of purchases ahead of potential price revisions from FY2027, and improved affordability from GST rate rationalisation, as well as low base.

Source: ICRA Research