Vahan Car Registrations Analysis – February 2026: Strong 25% YoY Growth in Retail Demand

India’s passenger vehicle market continued its strong momentum in February 2026, with retail registrations showing a healthy year-on-year increase. According to Vahan portal data (excluding Telangana), total passenger vehicle registrations reached 3,82,812 units in February 2026, compared with 3,05,841 units in February 2025, representing a 25.2% YoY growth.

However, on a month-on-month basis, registrations declined from 4,98,638 units in January 2026, translating to a 23.2% drop, largely due to January typically being a stronger retail month following year-end buying and inventory push. January also includes the registrations being done for the vehicles retailed in December as customers seek new year registration for better resale value.

The strong YoY growth aligns with broader industry trends, as India’s overall vehicle retail sales grew more than 25% YoY in February 2026, supported by improving consumer sentiment and strong rural demand.

(Figures exclude Telangana data)

Maruti Suzuki Continues Market Leadership

Maruti Suzuki retained its dominant position with 1,54,390 registrations, registering 28.3% YoY growth and expanding its market share to 40.3%, up from 39.4% last year.

Despite the strong annual growth, Maruti’s registrations declined 28.3% MoM compared to January 2026, reflecting the typical seasonal slowdown.

Tata Motors Strengthens No.2 Position

Tata Motors maintained its position as India’s second-largest carmaker in retail registrations with 55,260 units, registering a strong 42.5% YoY growth.

Its market share increased sharply to 14.4% from 12.7%, the highest gain among major OEMs in February. Tata’s consistent growth reflects sustained demand for its SUV lineup and EV portfolio.

Mahindra Continues SUV-Led Momentum

Mahindra & Mahindra recorded 53,479 registrations, marking 25.7% YoY growth.

The company’s market share stood at 14.0%, slightly higher than 13.9% last year, highlighting the continued demand for Mahindra’s SUV-focused lineup.

Hyundai Faces Market Share Decline

Hyundai registered 45,565 units, showing 15.8% YoY growth. However, the brand’s market share fell to 11.9% from 12.9% last year, indicating increasing competition from Tata and Mahindra in the SUV-heavy segments.

Toyota and Kia Maintain Growth Momentum

Both Toyota and Kia continued to grow strongly in the Indian market:

• Toyota: 26,407 registrations (+13.3% YoY)

• Kia: 24,994 registrations (+28.3% YoY)

Kia’s market share rose slightly to 6.5%, reflecting steady demand for models like New Seltos, Sonet and Carens.

Skoda–Volkswagen Group

The Skoda + Volkswagen combine posted 7,545 registrations, reflecting 11.9% YoY growth, although their market share slipped slightly to 2.0%.

Honda

Honda Cars India recorded 4,763 registrations, showing a 11% YoY decline and losing market share from 1.7% to 1.2%.

MG Motor

MG Motor India registered 4,538 units, down 6.2% YoY, with market share declining to 1.2%.

Renault

Renault saw 3,246 registrations, posting 27.4% YoY growth, indicating gradual recovery for the French brand.

Nissan, Citroen and Jeep

• Nissan: 1,618 units (-7.4% YoY)

• Citroen: 804 units (+88.3% YoY but from a low base)

• Jeep: 203 units (-39.6% YoY)

Market Share Trends – February 2026

Key market share highlights:

• Maruti Suzuki: 40.3% (+1.0%)

• Tata Motors: 14.4% (+1.8%)

• Mahindra: 14.0% (+0.1%)

• Hyundai: 11.9% (-1.0%)

• Toyota: 6.9% (-0.7%)

• Kia: 6.5% (+0.2%)

The biggest gainers in market share were Tata Motors and Maruti Suzuki, while Hyundai and Toyota experienced declines.

Retail vs Wholesale Trends

The Vahan registration data broadly reflects the trend seen in OEM wholesale dispatch numbers for February 2026, which were analysed earlier on Auto Punditz.

Read the earlier wholesale dispatch analysis here: https://www.autopunditz.com/post/indian-car-sales-figures-february-2026

Wholesale dispatches to dealers increased for several OEMs in February, supported by strong demand and expanding SUV segments. However, the difference between dispatch and registration numbers highlights the typical inventory adjustment cycle between dealer stock and actual retail demand.

Key Takeaways from February 2026 Vahan Data

1. Retail registrations grew strongly at 25% YoY, indicating healthy consumer demand.

2. Maruti Suzuki continues to dominate with over 40% market share.

3. Tata Motors remains the biggest market share gainer, strengthening its No.2 position.

4. Mahindra’s SUV strategy continues to deliver steady growth.

5. Hyundai and Toyota lost some market share amid rising competition.

6. Citroen posted the fastest growth percentage-wise, albeit from a small base.

✔ Total Passenger Vehicle Registrations (Excluding Telangana)

• Feb 2026: 3,82,812

• Feb 2025: 3,05,841

• YoY Growth: +25.2%