India’s automobile retail momentum is set to remain strong in February, with sales likely to post another round of double-digit growth, according to Saharsh Damani, CEO of the Federation of Automobile Dealers Associations (FADA).
While official retail data is yet to be released, Damani said early trends point to a broad-based surge across segments, extending the rally that began after the GST rate rationalisation in September.
Beyond the Reset
“Initial estimates are extremely bullish,” Damani said in an interaction with FE. “When GST 2.0 reduction came in September, many believed it could be a one-off phenomenon. But more than six months have passed, and this is clearly a sustained run.”
The momentum is not confined to passenger vehicles. Two-wheelers, three-wheelers and commercial vehicles are also reporting strong traction.
“Across categories whether two-wheelers, three-wheelers, cars or even commercial vehicles, which were lagging earlier everything is going great guns in double digits and, in some cases, high double digits,” he said.
Broad-Based Recovery
The recovery in commercial vehicles is particularly significant, as the segment had underperformed compared to passenger vehicles in recent quarters. An improvement here typically signals stronger freight movement and infrastructure-linked activity.
Damani expects the growth trend to continue through the close of the financial year. “February is extremely bullish, and we believe this kind of growth momentum will continue till at least March-end, if not beyond,” he said. Asked if the industry is likely to clock double-digit growth again this month, he replied: “Yes, definitely.”
Improving rural demand and resilient urban consumption have supported the upcycle, while dealer inventories remain at manageable levels.
If sustained, the February performance could help the industry close FY on a stronger-than-anticipated note, reinforcing the view that the post-GST reset has evolved into a broader demand uptrend rather than a temporary spike.