The Indian automotive industry started 2026 on a strong note, with passenger vehicle wholesales reaching approximately 4,50,000 units in January—the highest figure ever recorded for the month and the second-best monthly performance in history. The sales charts revealed a diverse mix of vehicles, with SUVs dominating the top 10 list alongside popular hatchbacks, sedans, and MPVs.
Leading Manufacturers Drive Growth Momentum
Maruti Suzuki Sets New January Benchmark
Maruti Suzuki India Limited maintained its market leadership position with an impressive dispatch of 2,36,963 units, reflecting a 12 percent year-on-year increase. The company achieved its best-ever January performance, with domestic deliveries accounting for 1,78,300 units and overseas shipments reaching a record 51,020 units.
Tata Motors Registers Strongest Growth
Tata Motors emerged as the standout performer with 70,222 units dispatched to dealers, marking a substantial 46.1 percent jump compared to January 2025. The company’s growth was primarily fueled by consistent consumer preference for the Nexon compact SUV and the Punch micro-SUV.
Mahindra and Hyundai Post Solid Numbers
Mahindra & Mahindra reported sales of 63,510 units, up 25.4 percent year-on-year, with the Scorpio family (including both Classic and N variants) leading its portfolio. Hyundai Motor India dispatched 59,107 units, a 9.5 percent rise, with the Creta mid-size SUV continuing to dominate its lineup.
Other Major Players Show Positive Trends
Toyota Kirloskar Motor recorded 30,630 units, achieving 17 percent growth, while Kia India registered 27,603 units, up 10.3 percent from the previous year.
Best-Selling Models: SUVs Lead Consumer Preference
| Rank | Model | Category | Units Sold |
|---|---|---|---|
| 1 | Tata Nexon | SUV | 23,365 |
| 2 | Maruti Swift Dzire | Sedan | 19,629 |
| 3 | Tata Punch | SUV | 19,257 |
| 4 | Hyundai Creta | SUV | 17,921 |
| 5 | Maruti Ertiga | MPV | 17,892 |
| 6 | Maruti Swift | Hatchback | 17,806 |
| 7 | Maruti Brezza | SUV | 17,486 |
| 8 | Maruti Baleno | Hatchback | 16,782 |
| 9 | Mahindra Scorpio (N & Classic) | SUV | 15,542 |
| 10 | Maruti Fronx | SUV | 15,240 |
The top 10 bestsellers included six SUVs, demonstrating the segment’s continued dominance in Indian consumer preferences, along with two hatchbacks, one sedan, and one MPV.
Market Dynamics: Beyond Festive Season Buying
GST Revisions Drive Sustainable Demand
January’s robust performance represents more than a typical post-festive boost. The sales surge continues the upward trajectory that began following the implementation of revised GST rates on automobiles on September 22, 2025. This policy change has created a more favorable pricing environment for consumers.
Key Factors Supporting Growth
Several elements are contributing to the sustained momentum:
- Enhanced affordability due to favorable tax structures
- Consistent availability of vehicle financing from banks and NBFCs
- Healthy dealer inventory levels ensuring prompt deliveries
- Strong order backlogs indicating continued future demand
Industry Outlook: Stable Growth Phase Ahead
The exceptional January figures suggest that India’s passenger vehicle market has transitioned from festival-driven purchasing patterns to a more consistent demand cycle. Industry analysts anticipate that upcoming months will see growth driven by new model launches and evolving segment preferences rather than price adjustments alone.
With manufacturer order books remaining robust and dealer stock levels well-managed, the automotive sector appears positioned for steady expansion throughout 2026. The shift toward SUVs continues unabated, while established hatchbacks and sedans maintain their relevance in the market mix.
The record-breaking start to 2026 signals positive prospects for India’s automobile industry, reinforcing the country’s position as one of the world’s fastest-growing automotive markets.
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