Lean dealer inventories and robust retail demand after the GST cut helped the industry start 2026 on a strong note.
01 Feb 2026 | 291 Views | By Ketan Thakkar & Kiran Murali
India’s passenger vehicle market is estimated to have clocked about 4.5 lakh units in January 2026 wholesales, marking the highest-ever performance in any January, and the second-highest for any month. Record dispatches come on the back of strong retail demand and lean inventory management at dealerships, which helped carry the ...
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India’s passenger vehicle market is estimated to have clocked about 4.5 lakh units in January 2026 wholesales, marking the highest-ever performance in any January, and the second-highest for any month. Record dispatches come on the back of strong retail demand and lean inventory management at dealerships, which helped carry the post-GST cut and festival season momentum into the new calendar year.
Major automakers, including Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Toyota Kirloskar Motor, and Kia India, have officially released their January sales numbers, all reporting year-on-year growth. The largest carmaker, Maruti Suzuki, is yet to release its January dispatch numbers at the time of publishing.
Based on sales data released so far by OEMs and historical run rates of those yet to report, total domestic passenger vehicle wholesales for the month are seen at around 4,52,000 units, representing around 12–13% growth from January 2025.
Industry executives said dealerships entered the year with lean inventory levels, allowing January wholesale volumes to closely track underlying retail demand rather than being driven by stock build-up, a structurally positive signal for the industry.
Wholesale growth was robust in the October–December period amid the GST cut and the festival season demand. Dispatches rose 17% to 4,60,739 units in October 2025, followed by an 18% increase in November, when dispatches stood at 4,12,405 units. Growth accelerated further in December 2025, with sales climbing 26.8% to 3,99,216 units.
Among OEMs that have announced numbers, Tata Motors reported January wholesales of 70,222 units, up 46.1% on year, while Mahindra & Mahindra posted 63,510 units, up 25.4%.
Hyundai India dispatched 59,107 units, up 9.5%, while Toyota Kirloskar Motor saw a 17% rise to 30,630 units. Kia India grew 10.3% to 27,603 units, with several smaller manufacturers also posting double-digit growth.
Based on industry estimates, Maruti Suzuki is expected to have dispatched around 1.74 lakh units in January, broadly in line with its recent run rate, though the company is yet to announce its numbers.
Rahul Bharti, executive officer for Corporate Affairs at Maruti Suzuki India, said during the company’s recent earnings call that the passenger vehicle market continues to operate in a positive demand environment, with retail momentum holding up beyond the immediate post-GST period.
He noted that demand in entry-level and compact segments has moved back into what he described as a “healthy black”, supported by improved affordability, tight dealer inventories, and steady participation from first-time buyers.
The industry’s record January numbers indicate that demand recovery has extended beyond festive-led buying into a more structurally stable phase. With inventories under control and order pipelines steady, the passenger vehicle market has entered 2026 with strong momentum. The growth ahead for the medium-to-long term is likely to depend more on new product launches and segment-level demand trends rather than pricing actions alone.