The Indian automotive sector commenced 2026 with a generally positive trajectory, as the majority of mass-market manufacturers reported year-on-year (YoY) growth in January. Following a high-volume period in late 2025 spurred by GST reforms and festive demand, the market saw a significant shift in the rankings, with Tata Motors overtaking Mahindra to secure the second position in domestic sales.
The Top Three: Maruti Suzuki, Tata, and Mahindra
Market leader Maruti Suzuki reported domestic sales of 1,74,529 units, reflecting a marginal YoY growth of 0.54 percent. While the company achieved its highest-ever cumulative monthly volume of 2,36,963 units (including exports), domestic demand showed a clear shift in consumer preference. Sales of hatchbacks and sedans fell by 11.78 percent, whereas the SUV, MPV, and van segments saw a combined growth of 14.64 percent. Notably, Maruti’s export volumes surged by 88.27 percent YoY.
Tata Motors emerged as the month’s primary gainer, recording 70,222 domestic units—a 46.06 percent increase over January 2025. This performance was driven by several factors:
- Strong demand for the Nexon and Punch, which sold 23,000 and 19,000 units respectively.
- A 72.75 percent YoY increase in electric vehicle (EV) sales.
- Positive market reception for the newly introduced Sierra.
Mahindra, despite a healthy 25.37 percent YoY growth with 63,510 units, slipped to third place. The company remains focused on its SUV expansion, citing the recent launches of the XUV 7XO and XEV 9S, alongside an upcoming Scorpio N facelift, as catalysts for future growth.
Mid-Tier Stability and Export Growth
Hyundai India maintained its fourth-place position, recording its highest-ever domestic January sales of 59,107 units, a 9.45 percent YoY improvement. The Venue was a significant contributor, accounting for 12,413 units. Toyota Kirloskar Motor followed with 30,630 units, up 17.01 percent YoY, though it experienced a 10.33 percent decline compared to December 2025. Toyota is currently preparing for the launch of its first domestic EV, the Urban Cruiser Ebella.
Kia India reported sales of 27,603 units, a 10.3 percent YoY increase. Growth was supported by the new-generation Seltos and steady demand for the Sonet and Carens Clavis. Meanwhile, Skoda Auto India saw a 22.2 percent YoY rise to 5,739 units, with the Kylaq compact SUV acting as a primary volume driver.
Contractions and Future Outlook
Not all manufacturers shared in the January growth. Honda Cars India saw domestic sales drop 15.45 percent YoY to 6,193 units, while its exports plummeted by 84.98 percent. Volkswagen also faced a downturn, with domestic volumes falling 18.96 percent YoY to 2,710 units. Both brands are looking toward 2026 product refreshes and new launches, such as the Volkswagen Tayron, to recover momentum.
In the emerging segments, JSW MG Motor India grew 8.71 percent YoY (4,843 units), led by the Windsor EV. Renault India (3,715 units) and Nissan Motor India (2,502 units) also posted YoY gains of 33.63 percent and 4.08 percent, respectively. Both French and Japanese manufacturers have significant launches planned for the first half of 2026, including the new Renault Duster and the Nissan Gravite MPV.
