Tamil Nadu, Gujarat Lead India's Auto Retail in February 2026

Tamil Nadu and Gujarat posted the most notable state-level gains in vehicle retail for February 2026, while two outlier figures — a 253% jump in West Bengal's three-wheeler registrations and a 64.5% collapse in Delhi's — reflect regulatory events rather than shifts in consumer demand. Nationally, total retail registrations rose 25.6% year-on-year to 24,09,362 units, surpassing the previous best February recorded in 2024.

Tamil Nadu 

Tamil Nadu registered 2,36,271 units in February 2026, a 46.2% increase over 1,61,627 units in February 2025 — the highest percentage gain among large states. The growth was spread across categories: two-wheelers rose 45.4% to 1,83,124 units, passenger vehicles climbed 53.7% to 33,827 units, and commercial vehicles grew 51.2% to 8,786 units.

The state has structural advantages that support consistent outperformance. Rural passenger vehicle sales nationally rose 34.21% year-on-year in February 2026, outpacing urban growth of 21.12%, with smaller towns supporting demand for entry-level and compact cars. Tamil Nadu, with one of India's denser rural dealer networks and a concentration of OEM manufacturing facilities, is positioned to capture a disproportionate share of that rural uptick. The February 2025 base for Tamil Nadu was also weak — the state registered only 1,61,627 units that month, which mechanically amplifies the year-on-year percentage.

Gujarat

Gujarat recorded 1,73,407 units (+37.3%). The headline figure within that is tractors: 5,659 units in February 2026 against 2,319 units in February 2025, a 144% increase.

This number can be attributed the state's sustained retail strength to improved rural demand, favourable GST impact, and positive agricultural sentiment. On tractors specifically, Gujarat had a record FY2024 for tractor registrations followed by a correction in FY2025, which pushed the February 2025 tractor base down to 2,319 units. The 144% figure in February 2026 is a partial recovery from that trough, set against improved crop realisations and rural liquidity in the current cycle. It is a significant jump, but the base effect accounts for a substantial portion of it.

West Bengal

West Bengal's overall retail grew 29.8% to 1,13,703 units — consistent with the national trend. Its three-wheeler figure, however, is not: 13,246 units in February 2026 versus 3,753 units in February 2025, a 253% increase.

This does not represent new vehicle purchases. In October 2025, the West Bengal state transport department mandated registration for all electric rickshaws, known locally as "ToTos." An initial compliance deadline of December 31, 2025 was extended to January 31, 2026, triggering bulk registration of previously unregistered vehicles in the L3 e-rickshaw category. Prior to the enforcement drive, an estimated 200,000 unregistered e-rickshaws were operating on the state's roads. The February 2026 figure reflects the tail end of that compliance window. The vehicles were already on the road — they are now in the registration data.

Delhi

Delhi's total retail grew 21.3% to 60,838 units, but its three-wheeler segment fell 64.5% — from 5,701 units in February 2025 to 2,023 units in February 2026.

The cause is a deliberate policy shift. From August 2025, the registration of CNG three-wheelers and goods carriers in Delhi was banned, and existing CNG auto permits are no longer being renewed. All new permits are being issued only for electric autos. Delhi also maintains a Supreme Court-upheld cap of 1,00,000 auto-rickshaw permits on environmental grounds. Electric auto supply has not yet scaled to fill the volume gap left by the CNG ban. The result is a transitional contraction — registrations are down not because demand has fallen, but because the category of vehicle that was previously being registered is no longer permitted.

Assam

Assam grew 7.4% overall to 50,307 units, but its two-wheeler registrations declined 5.8% — from 35,347 units in February 2025 to 33,288 units in February 2026. Assam is the only significant state where two-wheeler sales fell against a rising national trend.

The February 2025 Assam two-wheeler base of 35,347 units was elevated compared to surrounding months — a period when, nationally, FADA noted that inventory levels at dealers had exceeded comfortable thresholds, with urban markets declining more sharply than rural ones. Assam's elevated February 2025 number likely reflects dealer-level inventory absorption in that period rather than a genuine demand peak, making the February 2026 comparison unfavourable. There is no evidence from broader economic indicators of a structural demand decline in the state.

National Picture

Five of six vehicle categories — two-wheelers, three-wheelers, commercial vehicles, passenger vehicles, and tractors — registered their highest-ever February retail volumes. Construction equipment was the only segment to decline, falling 1.2%.

FADA attributed the broad-based growth to the GST 2.0 tailwind, with improved affordability and market confidence translating into retail gains across segments. Commercial vehicle growth was supported by freight movement, e-commerce activity, and infrastructure-led demand.

The national percentage gains are also partly a function of the comparison period. February 2025 was a weak month across the industry, which lowers the base against which February 2026 is measured.