Indian Automobile Sector Sustains Growth Momentum in February
India's automobile industry continued its upward trajectory in February, with leading car manufacturers reporting increased dispatches to dealers, driven by steady consumer demand across passenger vehicles and utility segments. This growth reflects the resilience and strength of the domestic market, as highlighted by recent data from PTI.
Key Players Report Significant Sales Increases
Major automakers demonstrated robust performance last month. Maruti Suzuki India, the market leader, saw its domestic passenger vehicle sales rise to 1,61,000 units in February, compared with 1,60,791 units in February 2025. While the compact car segment experienced a slight decline, utility vehicle sales surged to 72,756 units from 65,033 units a year earlier.
Partho Banerjee, Senior Executive Officer for Marketing and Sales at Maruti Suzuki, emphasized the company's efforts to optimize production. "We have been calibrating production to reduce waiting periods across models," he stated. The automaker achieved record sales of 2.14 lakh units in February, operating at over 100% capacity, with a new manufacturing line set to become operational in April, potentially boosting volumes from May onwards.
Diversified Export Strategy Amid Global Tensions
Addressing concerns about the impact of conflicts in the Middle East, Rahul Bharti, Senior Executive Officer for Corporate Affairs at Maruti Suzuki, noted that the company's exposure to the region is limited. "Our exports to the Middle East account for about 12.5% of total exports this year," he explained. Maruti Suzuki exports to nearly 100 countries, ensuring a diversified and de-risked portfolio. This strategic approach helps mitigate risks during uncertain times, allowing the company to expand exports broadly while maintaining stability.
Other Automakers Show Strong Performance
- Tata Motors Passenger Vehicles reported a 34% increase in dispatches, with 62,329 units sold in February compared to 46,435 units a year ago.
- Mahindra & Mahindra's domestic utility vehicle sales rose 19% to 60,018 units, with CEO Nalinikanth Gollagunta attributing this to "robust customer demand across the portfolio."
- Hyundai Motor India experienced a 10% year-on-year growth, selling 52,407 units domestically. MD and CEO Tarun Garg highlighted the company's strong start to 2026, with record sales in January and continued momentum in February.
- Toyota Kirloskar Motor and Kia India also posted increases of 16% and 10%, respectively, in domestic sales, indicating widespread market vitality.
Two-Wheeler Segment Sees Remarkable Growth
In the two-wheeler category, Hero MotoCorp reported a substantial 45% year-on-year rise in dispatches, reaching 5,16,968 units compared to 3,57,296 units in February 2025. This surge underscores the broader strength of India's automotive industry, catering to diverse consumer needs.
The overall performance in February suggests that India's automobile sector is on a steady growth path, supported by domestic demand and strategic export diversification. As automakers continue to innovate and expand, the industry is poised for further advancements in the coming months.
