India's auto sales hit record highs in January 2026, fueled by lower taxes and strong government support.

India’s auto industry posted record sales in January 2026, with passenger vehicle dispatches up 12.6% to 449,616 units, two-wheelers surging 26.2% to 1.93 million units, and three-wheelers rising 30.2% to 75,725 units—each marking their highest January totals ever. Growth was driven by sustained consumer demand following GST rate reductions and supportive government policies, including the Union Budget 2026’s manufacturing initiatives. Exports also rose sharply across all segments, reflecting strong domestic production and international demand.