India’s automobile industry delivered an exceptional performance in February, with strong growth recorded across passenger vehicles, two-wheelers, tractors and commercial vehicles. In the latest episode of the AP Trends Podcast, auto industry expert Arun Malhotra highlights how robust retail demand, stable pricing, and continued benefits from GST rationalisation have driven a sharp upswing in the market. February auto sales - both wholesale and retail, signal a strong recovery in consumer sentiment and dealership momentum.
However, while February’s numbers reflect powerful demand, global uncertainties could influence the trajectory ahead. Rising crude prices and geopolitical tensions in the Middle East could affect supply chains, consumer sentiment, and costs in the coming months. Silver lining is that dealer inventories are currently at comfortable levels and most OEMs have strong bookings in the pipeline. Despite headwinds, the industry is expected to close FY26 with record volumes, particularly in two-wheelers and tractors, making GST rationalisation the defining catalyst behind this year’s growth story.
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