India’s passenger vehicle market opened the calendar year on a firm note, with retail registrations showing a clear rebound in January 2026. According to data released by the Federation of Automobile Dealers Associations (FADA), passenger vehicle retail sales stood at 5,13,475 units during the month, compared with 4,78,915 units in January 2025 and 3,79,671 units in December 2025. The figures indicate both year-on-year growth and a strong month-on-month recovery, reflecting renewed showroom activity after the typical year-end slowdown.
The January performance reinforces the resilience of domestic demand even as the industry navigates evolving consumer preferences, rising competition in the SUV segment, and a gradual shift in fuel choices. Retail data, which captures actual vehicle registrations at regional transport offices rather than factory dispatches, provides a closer snapshot of real customer purchases.
Maruti Suzuki continued to dominate the passenger vehicle landscape, registering 2,16,043 units in January and commanding just over 42 percent of the retail market. The company’s wide portfolio, stretching from entry-level hatchbacks to compact SUVs and multi-purpose vehicles, has enabled it to retain a commanding lead even as competition intensifies across segments. Its scale advantage and extensive dealership network remain key drivers of its sustained top position.
Behind the market leader, the race for the second spot was notably tight. Hyundai recorded 65,914 retail registrations, placing it ahead of Tata Motors and Mahindra & Mahindra, both of which reported just over 63,000 units for the month. The narrow gap between these three automakers underscores a competitive second tier in India’s passenger vehicle market, where shifts in model demand or supply can quickly alter rankings.
Hyundai’s performance reflects steady traction in its SUV and compact car lineup, while Tata Motors continues to benefit from its strong SUV portfolio and electric vehicle offerings. Mahindra, which has sharpened its focus on utility vehicles and SUVs, maintained strong momentum with consistent demand in the domestic market. The closeness of their January numbers suggests that the battle for market share in 2026 will likely remain intense.
Toyota Kirloskar Motor also delivered a solid performance with 35,053 retail registrations, reinforcing its growing footprint in the mass and premium segments. Kia India followed with 29,954 units, sustaining its presence among the top six brands. Both companies have leveraged SUV-centric strategies and multi-fuel offerings to capture a meaningful share of India’s expanding passenger vehicle base.
Further down the rankings, brands such as Skoda Auto Volkswagen Group, MG Motor, Honda Cars India and Renault posted more modest volumes, reflecting the highly concentrated nature of India’s passenger vehicle market, where the top six players account for a substantial majority of registrations.
The broader retail data released for January 2026 shows total automobile registrations across all categories at over 27 lakh units, indicating healthy activity across two-wheelers, commercial vehicles and tractors as well. Within the passenger vehicle category specifically, the month recorded a year-on-year growth of over seven percent and a sharp month-on-month increase exceeding 35 percent, highlighting the seasonal rebound that typically accompanies the start of a new calendar year.
Fuel preferences in January offer additional insight into evolving consumer trends. Petrol-powered vehicles continued to account for the largest share at just under half of total registrations. Diesel vehicles contributed over 17 percent, while CNG and LPG vehicles collectively represented nearly 23 percent of the market, underscoring sustained interest in cost-efficient alternatives. Hybrid vehicles held close to nine percent of the share, and electric vehicles accounted for around 3.6 percent of passenger vehicle registrations. The steady rise of CNG and hybrid options suggests that many buyers are opting for lower running costs and improved efficiency without fully transitioning to pure electric models.
Industry observers note that the coming months will be crucial as manufacturers push to close the financial year on a strong note. February and March typically see targeted offers, fleet purchases and heightened marketing activity. The tight contest for the second and third positions among Hyundai, Tata Motors and Mahindra & Mahindra is expected to continue, particularly as each brand expands its SUV portfolio and refines its powertrain strategies.
January 2026 thus sets the tone for a competitive year in India’s passenger vehicle market. With demand holding steady and brand competition intensifying, the market leadership remains firmly with Maruti Suzuki, but the battle just below it signals a dynamic phase for the industry as it moves deeper into the new financial year.
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Last Updated on: Wednesday, February 11, 2026 12:18 pm by News Proton Team | Published by: News Proton Team on Wednesday, February 11, 2026 12:18 pm | News Categories: Automobile, General