India's auto retail sales surge 26% in February 2026 , hitting record highs across nearly all segments. The Federation of Automobile Dealers Association reported 24.09 million units sold, driven by improved affordability and market confidence following GST 2.0 implementation. Passenger vehicles grew 26.12% year-on-year, commercial vehicles jumped 28.89%, and two-wheelers increased 25.02%. The tractor segment led growth at 36.35%, while only construction equipment declined slightly. Passenger vehicle inventory dropped to 27-29 days, approaching the recommended 21-day benchmark and signaling healthier market alignment. FADA president noted February surpassed the previous record from February 2024, with growth broad-based across segments. The Indian auto sector appears to be transitioning from a sharp rebound phase toward more stable, calibrated growth as it moves forward.