Passenger vehicle (PV) wholesale dispatches from manufacturers to dealers posted low double-digit growth in February, rising 10.7% year-on-year (YoY) to 424,292 units, compared with 383,243 units in the same month last year, according to industry data.
The expansion was largely driven by sustained demand for sport utility vehicles (SUVs), which continued to anchor volumes for most major carmakers.
Market leader Maruti Suzuki reported marginal growth of 0.1% YoY at 161,000 units in February 2026, up from 160,791 units a year earlier. While it retained its leadership position, its growth lagged peers amid intensifying competition in the SUV space. The company, however, maintained that dispatch numbers were constrained by production capacity rather than demand weakness, as its plants are operating at full capacity.
Mixed Bag for Marut
Partho Banerjee, Senior Executive Officer (Marketing & Sales), said wholesale numbers reflect factory dispatches and do not fully capture underlying retail demand. He added that supply constraints are expected to ease by May, with the second production line at the company’s Kharkhoda facility in Sonipat scheduled to become operational in April.
Maruti has been maintaining that demand for small cars has remained steady following the GST 2.0 reform. However, segment-wise data reflected a mixed trend. Dispatches in the mini segment, comprising models such as Alto and S-Presso, were largely flat at 10,238 units. Volumes in the compact segment — including Baleno, Celerio, Dzire, Ignis, Swift and Wagon R — declined 9% to 66,386 units.
Management said entry-level dispatches had been front-loaded in December, with production since recalibrated to balance demand across segments. Utility vehicle sales, including Brezza and Ertiga, rose 11.9% to 72,756 units, underscoring continued SUV traction.
SUV Specialization
Among peers, Tata Motors emerged as the fastest-growing major carmaker in February, registering a sharp 34% YoY jump in wholesales to 62,329 units, up from 46,435 units a year ago, driven by strong demand for its SUV portfolio.
Mahindra & Mahindra reported a robust 19% increase in dispatches to 60,018 units, compared with 50,420 units in February 2025, benefiting from sustained momentum across its utility vehicle range.
Hyundai Motor India recorded a 9.8% YoY rise in volumes at 52,407 units, up from 47,727 units a year earlier, supported by steady demand for its SUV models.
Toyota Kirloskar Motor posted a 16% increase in dispatches to 30,737 units from 26,414 units in the year-ago period, aided by continued strength in its utility vehicle line-up. Kia India, too, reported a 10.3% rise in volumes to 27,610 units, compared with 25,026 units in February 2025.
Industry analysts noted that SUV-focused manufacturers outpaced the broader market during the month, with players such as Tata Motors and Mahindra delivering growth well above the industry average, reinforcing the segment’s dominance in shaping India’s passenger vehicle demand.