India’s passenger vehicle sales hit a historic 4.49 lakh units in January 2026, rising 12.6% YoY. Maruti, Tata, Mahindra and Hyundai lead growth.
January 2026 Becomes a Record Month for India’s Car Industry with 4.49 Lakh Sales
India’s car market has started 2026 on a seriously strong note. January turned out to be a historic month for the passenger vehicle (PV) segment, with total dispatches touching 4,49,616 units. According to the Society of Indian Automobile Manufacturers (SIAM), this is a 12.6 per cent increase compared to January last year.
To put that into perspective — this is the highest-ever January performance in the history of India’s automobile industry. That’s a big deal.
Maruti Suzuki Stays on Top
When it comes to market leadership, Maruti Suzuki continues to dominate. In January 2026, the company dispatched 2,36,962 units, registering an 11.6 per cent year-on-year growth.
Its domestic passenger vehicle sales stood at 1,74,529 units. But what’s even more impressive is its export performance — 51,020 units were shipped overseas. That’s Maruti’s highest January export number ever.
The brand’s wide portfolio across hatchbacks, sedans and SUVs continues to work in its favour. Whether it’s budget buyers or family SUV customers, Maruti has something for everyone. That balanced lineup is helping it stay comfortably ahead of rivals.
Tata Motors Makes a Strong Comeback
Tata Motors delivered around 70,222 units in January 2026, marking its best-ever January performance. With this, Tata regained the second position in the passenger vehicle rankings.
The Tata Nexon and Punch remain the biggest crowd-pullers for the brand. Both SUVs continue to attract buyers thanks to their strong safety ratings, modern design and feature-loaded cabins.
Tata’s electric vehicles are also playing an important role in overall sales. As more people consider switching to EVs, Tata’s early mover advantage is clearly helping the company.
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Mahindra’s SUV Wave Continues
Mahindra & Mahindra posted one of the most impressive growth numbers this month — a 25.37 per cent jump to 63,510 units.
The reason? SUVs. Purely and simply SUVs.
Models like the Scorpio-N and XUV700 continue to enjoy strong demand. In fact, Mahindra has built a solid reputation for rugged, feature-rich SUVs that appeal to both city buyers and rural customers.
The company’s strategy of focusing heavily on SUVs is clearly paying off in a big way.
Hyundai Holds Steady
Hyundai Motor India sold 59,107 units in January 2026. While the growth wasn’t as dramatic as some competitors, the brand maintained a stable performance.
The Hyundai Creta continues to be its strongest pillar. The mid-size SUV remains one of the most popular models in its segment and consistently contributes high volumes.
Hyundai’s balanced approach — offering premium hatchbacks and SUVs — keeps it competitive in multiple segments.
SUVs Are Driving the Market
If there’s one clear trend from January 2026, it’s this: SUVs are ruling the Indian market.
From compact SUVs to mid-size and full-size models, buyers are choosing SUVs over traditional sedans and hatchbacks. Higher ground clearance, better road presence, spacious interiors and improved safety features are key reasons behind this shift.
Dealership inventory levels were also well-managed during the month. This helped brands maintain steady retail sales without building up excess stock — something that can hurt future numbers.
Not Just Cars — Two & Three-Wheelers Shine Too
Interestingly, January wasn’t just strong for passenger vehicles. The two-wheeler and three-wheeler segments also recorded their best-ever January figures.
This suggests overall demand across the auto sector is healthy. Strong rural demand, better financing options and stable economic conditions are contributing factors.
When all segments perform well together, it signals broader market confidence.
Policy Support Adds Confidence
Another factor supporting the industry is policy direction. Measures announced in the Union Budget 2026 aimed at boosting domestic manufacturing and supporting infrastructure development are improving overall sentiment.
At the same time, new car launches and regular model updates are keeping buyers excited. Fresh products always create buzz — and that translates into showroom footfall.
Facing Challenges — Yet Moving Forward
It’s important to remember that this growth has not come easily. Automakers are still dealing with:
- Fluctuating input and raw material costs
- Occasional supply chain disruptions
- Global uncertainties
Despite these challenges, January 2026 shows that the Indian passenger vehicle market is resilient.
Strong demand, smarter inventory planning and better production management are helping companies navigate these hurdles effectively.
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A Promising Start to 2026
Starting the year with nearly 4.5 lakh passenger vehicle dispatches sets a positive tone for the months ahead. If momentum continues, 2026 could become another milestone year for India’s auto industry.
Maruti Suzuki remains the leader. Tata Motors has strengthened its position. Mahindra is riding high on SUV demand. Hyundai continues to stay consistent. And overall industry volumes are touching new highs.
The message is clear — the Indian car market is not slowing down. It’s evolving, expanding and becoming more competitive than ever.
January 2026 wasn’t just a good month. It was a historic one.