The Indian auto industry has kicked off the year with a bang, posting an all-time high in domestic sales in January, with more than 27,20,881 units sold across segments (passenger vehicles, two-wheelers, commercial vehicles, and more), per Vahan data (excluding Telangana).
This growth momentum continues to bank on the favourable environment created since the GST cut in September 2025, the income tax rebate, and steady demand in the automotive market. The Indian automotive industry has clocked its highest January retail sales post-pandemic (2022), with 2025 reporting 23,21,692 units sold, showed government data.
This also marks multiple all-time highs and strong deliveries for the automakers, including Hyundai Motor India, Tata Motors, and Mahindra and Mahindra. The overall passenger vehicle industry has reported around 4,55,000 unit sales last month, according to Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India.
| 2025 | OEM | Rank | OEM | 2026 |
| 185,151 | Maruti Suzuki India | 1 | Maruti Suzuki India |
185,943 |
| 54,003 | Hyundai India | 2 | Tata PV | 70,222 |
| 50,659 | Mahindra & Mahindra | 3 | Mahindra & Mahindra | 63,510 |
| 48,076 | Tata PV | 4 | Hyundai India | 59,107 |
| 26,178 | Toyota Kirloskar Motor | 5 | Toyota Kirloskar Motor |
30,630 |
The chart leaders
India’s largest automaker, Maruti Suzuki India, reported flat domestic sales growth, with 185,943 units sold, up from 185,151 units. Though its overall sales (PV+LCV+OEM+Exports) touched an all-time high of 2,36,963 units.
The company also reported a 25 per cent rise in bookings. It indicated that it may consider a price hike in the coming months due to rising raw material costs, amid continued pressure on key commodities such as platinum, aluminium, copper and rare-earth elements.
“Commodity prices, especially precious metals, have risen sharply. We are closely monitoring the situation amid ongoing geopolitical uncertainties. Once conditions stabilise, we will review a potential price increase,” Banerjee said during the post-monthly business update call.
Tata Motors Passenger Vehicles grabbed the second position and reported strong YoY growth of 46.1 per cent, selling 70,222 units in January 2025. January 2026 revived its best-selling Punch last month and also reported the strongest-ever monthly sales for Nexon and Punch, with 23,000 units and 19,000 units, respectively.
Mahindra and Mahindra grabbed the third place on the charts, reporting a 25 per cent YoY increase, from 50,659 units to 63,510 units, in January 2026. The company, which recently opened bookings for the XUV7XO and XEV 9S, has clocked over 93,689 bookings, totalling a booking value of Rs. 20,500 crore.
“Building on the strong momentum of last year’s performance, we began the year on a strong note in January by achieving SUV sales of 63,510 units, a growth of 25 per cent and LCV< 3.5T sales of 27,656 units, a growth of 22 per cent. The total vehicle sales stand at 104,309 units, a 24 per cent year-on-year growth," said Nalinikanth Gollagunta, CEO, Automotive Division, M&M.
Hyundai holds ground
The Indian arm of South Korean automaker Hyundai Motor India grabbed fourth place with 59,107 units. The company has also reported its all-time high monthly sales and grabbed the second position in overall sales (domestic + exports) with 73,137 units sold in January 2026.
Interestingly, the company mentioned that the Venue and Aura achieved their highest monthly sales at 12,413 units and 7,978 units, respectively. The Creta’s sales numbers were not mentioned in the business update.
“January 2026 marks a defining chapter in Hyundai Motor India’s journey. Achieving our highest-ever monthly domestic sales of 59,107 units, alongside highest-ever total sales of 73,137 units with a strong 11.5 per cent year-on-year growth, reflects not only Hyundai’s brand leadership but also the collective strength of our people, partners and customers. The remarkable 20.9 per cent growth in exports to 14,030 units underscores the trust brand Hyundai continues to inspire across global markets,” said Tarun Garg, MD & CEO, HMIL.
Toyota Kirloskar Motor held on to its fifth position, with 30,630 units sold in January, up from 26,178 in the same period last year.
JSW MG Motor India reported a 9 per cent YoY growth in sales last month, driven by continued demand for models such as the MG Windsor electric vehicle and the Hector SUV.
Word of caution from industry
Despite optimism around GST reforms, macro and cost pressures could delay a sustained recovery in industry growth. Sharp increases in raw material costs could pressure margins and pricing.
“While GST 2.0 could help the auto industry return to a 6–7 per cent CAGR, rising commodity prices and geopolitical uncertainty mean we need to wait and watch before making firm forecasts,” Banerjee added.
While the Union Budget on February 1 did not carry any explicit, sector-specific announcements for the automobile sector, industry leaders maintained that the broader macro and infrastructure push would continue to support long-term growth.
Industry executives noted that sustained public capital expenditure on roads, logistics, ports and urban infrastructure, along with policy stability, remains critical for driving vehicle demand and improving supply-chain efficiencies.
They said deeper localisation of electric-vehicle, electronics, battery and rare-earth supply chains is now a top priority to reduce import dependence and strengthen domestic value addition.
