India’s automobile industry began 2026 on a strong footing, with leading automakers reporting solid sales growth in January as consumer sentiment improved and demand remained firm across passenger vehicle and two-wheeler segments. Continued momentum from festive-season buying, product refreshes, and improved market confidence helped manufacturers deliver encouraging numbers, according to industry data.
Major players including Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hyundai Motor India, Toyota Kirloskar Motor, and Kia India posted year-on-year growth, reflecting sustained demand despite ongoing supply-side challenges.
Maruti Suzuki Leads With Record Monthly Sales
Maruti Suzuki India, the country’s largest carmaker, reported domestic passenger vehicle dispatches of 1,74,529 units in January, marginally higher than 1,73,599 units in the same month last year. The company achieved its highest-ever monthly total sales of 2,36,963 units, underscoring its continued dominance in the Indian market.
Segment-wise performance revealed mixed trends. Sales in the mini segment, which includes Alto and S-Presso, rose slightly to 14,268 units compared to 14,247 units a year earlier. However, compact car dispatches, including popular models like Baleno, Swift, Dzire, and Ignis, declined to 72,738 units from 82,241 units in January last year.
The strongest growth came from utility vehicles, a category that includes Grand Vitara, Brezza, Ertiga, and XL6. Dispatches in this segment surged to 75,609 units, up from 65,093 units year-on-year, reflecting India’s growing preference for SUVs and multi-purpose vehicles.
Commenting on the performance, Partho Banerjee, Senior Executive Officer, Marketing & Sales at Maruti Suzuki India, said the company received over 2.78 lakh bookings, representing a 25 percent year-on-year growth. He added that Maruti Suzuki is currently receiving between 9,000 and 10,000 bookings daily. The company’s recently launched SUV, Victoris, crossed the 50,000-unit sales milestone within just five months of launch.
Banerjee also acknowledged ongoing production constraints, stating that capacity pressures would persist for a few more months until new manufacturing facilities become operational.
Tata Motors, Mahindra, and Hyundai Post Solid Gains
Tata Motors Passenger Vehicles reported a significant jump in domestic sales, with dispatches rising to 70,222 units in January, compared to 48,076 units in the same month last year—an impressive 46 percent growth.
Mahindra & Mahindra continued its strong run in the SUV segment, posting domestic dispatches of 63,510 units, up 25 percent year-on-year from 50,659 units. The company’s consistent demand for models like Scorpio-N, XUV700, and Thar has helped maintain its upward trajectory.
Hyundai Motor India recorded a 9 percent increase in domestic wholesales at 59,107 units, compared to 54,003 units in January last year, supported by steady demand for its refreshed lineup and strong urban presence.
Toyota, Kia, and Renault Maintain Growth Momentum
Toyota Kirloskar Motor (TKM) reported a 17 percent rise in domestic sales at 30,630 units, up from 26,178 units in January last year. TKM Executive Vice President Sabari Manohar said the year began on a positive note, driven by customer trust in Toyota’s commitment to quality, safety, and sustainability.
Kia India posted a 10 percent year-on-year growth, selling 27,603 units in January. According to Kia India Senior Vice-President, Sales & Marketing Atul Sood, the strong response to the new-generation Seltos, steady demand for Sonet, and rising popularity of Carens Clavis and Clavis EV have reinforced the brand’s balanced portfolio.
Renault India also recorded healthy growth, with dispatches increasing 34 percent year-on-year to 3,715 units, compared to 2,780 units in January last year.
Two-Wheeler Segment Shows Strong Recovery
The two-wheeler industry also witnessed robust demand. Hero MotoCorp reported dispatches of 5,20,208 units, marking a 26 percent growth over 4,12,378 units in January last year.
Royal Enfield continued its premium motorcycle momentum, posting domestic sales of 93,781 units, up 16 percent from 81,052 units a year earlier.
TVS Motor Company delivered one of the strongest performances in the segment, with domestic two-wheeler sales rising 30 percent to 3,83,262 units, compared to 2,93,860 units in January last year.
Outlook
Industry experts believe the strong January performance reflects improving consumer confidence, sustained demand for SUVs and premium motorcycles, and the positive impact of product launches. While capacity constraints and cost pressures remain challenges, automakers appear optimistic about maintaining momentum into the coming months.