Car Makers Kick Off New Year with Robust Demand for SUVs
This growth last month was led by sustained demand for SUV models in the world’s third largest automobile market with six SUVs featuring among the top 10 bestselling models.
Pune: Car makers in India started the CY2026 on a strong footing, with January dispatches from factory gates to dealers estimated at around 4.5 lakh units, marking the highest-ever January performance and the second-highest monthly tally on record.
This growth last month was led by sustained demand for SUV models in the world’s third largest automobile market with six SUVs featuring among the top 10 bestselling models.
The car market clocked around 4.5 lakh to 4.55 lakh units in January 2026, as against nearly 4.04 lakh units in the year-ago month, logging 12.62 per cent on-year growth, per industry data.
While Maruti Suzuki posted its highest-ever domestic PV wholesales for any January last month, Tata and Hyundai achieved their highest-ever monthly domestic sales in Jan.2026.
Market leader Maruti Suzuki, clocked 0.54 per cent on-year growth at 1.74 lakh units in Jan.2026, marginally up from 1.73 lakh units in the same month last year.
“The passenger vehicle market seems to be pretty good. The tailwinds are very much there, pushing up demand,” said Partho Banerjee, Senior Executive Officer for Marketing and Sales at Maruti Suzuki.
Sales at Tata Motors jumped 46 per cent on year, including EVs at 70,222 units in last month from 48,076 units in the year-ago period.
The major volume drivers for Tata were the Nexon SUV (23,365 units) and the Punch SUV (19,257 units).
Sales at Mahindra, the SUV specialist, climbed 25.37 per cent on year at 63,510 units in Jan.2026, up from 50,659 units sold in January 2025. The major volume driver were the Scorpio SUV at 15,542 units and the Bolero SUV at 11,841 units.
"On January 14, we opened bookings for the XUV 7XO and the XEV 9S, clocking 93,689 bookings for a booking value of Rs 20,500 crore, a record-breaking milestone in just four hours," said Nalinikanth Gollagunta, Mahindra's Automotive Division CEO.
Sales at Hyundai also grew 9.5 per cent on year at 59,107 units in Jan.2026, as against 54,003 units sold in the same month last year. The Creta SUV drove the volumes at 17,921 units, with the recently launched Venue SUV selling 12,413 units.
Tarun Garg, Hyundai MD and CEO, said Jan.2026 marked a defining chapter in the company's journey as it achieved its highest-ever monthly domestic sales. “As we look ahead in the year, we will continue to lead with purpose, creating enduring value for our customers, empowering our stakeholders and shaping the future of mobility in India," he noted.
Sales at Toyota rose 17 per cent on year at 30,630 units in Jan.2026, up from 26,178 units a year ago.
Sales at Kia also increased 10.3 per cent on year at 27,603 units in Jan., as against 25,025 units sold in the year-ago period.