India’s passenger vehicle market recorded its best-ever January performance in 2026, with wholesales reaching 4,52,589 units, a 12.7% growth over January 2025. Strong demand for SUVs and electric cars, along with the impact of the Post GST 2.0 duty cuts, helped drive the surge.
Maruti Suzuki retained market leadership with 1,74,529 domestic sales and a record 51,020 exports, taking its total to 2,36,963 units. Tata Motors staged a powerful comeback, reclaiming the second spot with 70,222 units, a sharp 46.1% year-on-year rise. Mahindra, Hyundai, and Toyota also posted healthy growth.
The Tata Nexon emerged as India’s best-selling car in January, while SUVs dominated the top 10 list with six models.
The EV segment surged 51%, with 18,042 electric cars sold.
- Tata Motors led the EV space with 7,852 units
- JSW MG Motor followed with 4,606 units
- Mahindra sold 3,589 electric vehicles
Better charging access, lower running costs, and government support continue to push EV adoption across cities.
With rising SUV demand, fast EV adoption, and supportive policies, India’s auto market has entered a strong growth phase in 2026.
The Post GST 2.0 duty adjustments played a key role in strengthening the auto market. Lower tax pressure and stable pricing helped:
- Improve buyer confidence
- Reduce ownership costs
- Encourage first-time and upgrade buyers
This policy support, combined with fresh product launches, created a strong sales environment in January 2026.
Top 10 Best-Selling Cars in India – January 2026
The Tata Nexon emerged as the best-selling car in India for the month, highlighting the strong demand for compact SUVs.
| Rank | Model | Units Sold |
|---|---|---|
| 1 | Tata Nexon | 23,365 |
| 2 | Maruti Suzuki Dzire | 19,629 |
| 3 | Tata Punch | 19,257 |
| 4 | Hyundai Creta | 17,921 |
| 5 | Maruti Suzuki Ertiga | 17,892 |
| 6 | Maruti Suzuki Swift | 17,806 |
| 7 | Maruti Suzuki Brezza | 17,486 |
| 8 | Maruti Suzuki Baleno | 16,782 |
| 9 | Mahindra Scorpio | 15,542 |
| 10 | Maruti Suzuki Victoris | 15,240 |