The GST cuts announced by the government in September 2025 benefited the auto industry immediately. Well, the car market is still afloat on positive sentiment, as total vehicle registrations hit 27,22,558 units in January 2026, a 17.61% year-on-year (YoY) increase.
Among the 27.22 lakh units sold, 18.52 lakh are two-wheelers (20.82% YoY growth), 5.13 lakh are passenger four-wheelers (7.22% YoY growth), and the remaining 1.07 lakh are commercial vehicles (15.07% YoY growth).
ICE Segment – Maruti Leads, But Tata & Mahindra Outperform Their Competitors
The ICE segment still remains the volume driver, benefiting heavily from the lower 18% GST rates on small cars and two-wheelers.
- Small and mid-sized cars: Sales picked up due to an increased rural demand, following the harvest festivals (Pongal/Makar Sankranti) and the peak wedding season.
- SUVs and luxury cars: Despite a higher 40% GST rate (the “Sin Tax” bracket for vehicles >4m or with engines >1500cc), the SUV craze continues. Mahindra and Tata have seen high demand for their flagship ICE models.
- Two-wheelers: This sector saw the highest growth (20%+).
Also Read: Dear Hyundai: Fix The Exter With These Punch-y Features So I Can Finally Buy One
| Rank | Carmaker | January 2026 Sales (Units) | YoY Change (%) | Status / Key Driver |
| 1 | Maruti Suzuki | 1,74,529 | +0.54% | Market leader; SUV/MPV growth offset hatchback decline. |
| 2 | Tata Motors | 70,222 | +46.06% | Climbed to 2nd; Strong demand for Nexon, Punch, and Sierra. |
| 3 | Mahindra | 63,510 | +25.37% | Slipped to 3rd; Optimistic due to XUV 7XO and XEV 9S. |
| 4 | Hyundai | 59,107 | +9.45% | Highest-ever domestic sales; New Venue led the volume. |
| 5 | Toyota | 30,630 | +17.01% | Strong performance; Preparing for Ebella EV launch. |
| 6 | Kia | 27,603 | +10.30% | Boosted by new-gen Seltos and Sonet demand. |
| 7 | Honda | 6,193 | -15.45% | Experienced a decline; Moved up one rank despite drop. |
| 8 | Skoda | 5,739 | +38.86% | Significant growth driven by the Kylaq. |
| 9 | JSW MG Motor | 4,843 | +8.71% | Recovered from previous decline; Windsor EV is a bestseller. |
| 10 | Renault | 3,715 | +33.63% | Strong YoY surge; Awaiting 2026 Duster launch in March. |
| 11 | Volkswagen | 2,710 | -18.96% | Decline continues; Hopes pinned on the upcoming Tayron. |
| 12 | Nissan | 2,502 | +4.08% | Slight growth; New models (Gravite, Tekton) coming soon. |
Also Read: Toyota Urban Cruiser Ebella vs Maruti Suzuki e-Vitara: Should You Wait for e-Vitara Now?
EV Segment: Tata Remains The King, But Mahindra Is Catching Up Real Fast
As the charging infrastructure matures, the EV segment is also experiencing explosive growth: a 55% YoY increase.
The GST rate on EVs remains 5%, providing a significant price advantage over ICE counterparts. However, I’d still say EVs are way too expensive to compare directly with their ICE versions.
- Tata Motors remains the undisputed champion, selling nearly 8,500 units in January (which is the company’s best-ever monthly EV sales performance).
- MG Motor: Secured the second spot, heavily supported by the Windsor EV and the Comet.
- Mahindra: Stable performance with the XUV 7XO (EV) and XEV 9e. The newly launched 7XO has already begun reaching customers.
- VinFast: The Vietnamese newcomer has made a surprising entry, holding 4th place in sales (400+ units MoM). Their commitment to local manufacturing and 100% ownership has given them an edge over Chinese rivals.
Also Read: Tata Punch EV Facelift Teases a Cleaner Face and Smarter Tech for 2026
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