- Construction equipment was the only vehicle segment to record a year-on-year decline in February 2026.
- India’s overall auto retail market achieved its strongest February performance across most vehicle categories.
The Federation of Automobile Dealers Associations February 2026 vehicle retail data highlights a contrasting performance across India’s automotive market. While most vehicle categories recorded strong growth and achieved record February volumes, the construction equipment segment was the only category to show a decline. The retail data, compiled by Federation of Automobile Dealers Associations in collaboration with the Ministry of Road Transport and Highways, reflects trends observed across nearly all registered transport offices nationwide.
Construction Equipment Segment Records Decline
Construction equipment retail stood at 6,721 units in February 2026, compared with 6,804 units in the same month last year, representing a year-on-year decline of 1.22%. On a month-on-month basis, retail also slipped 1.65% compared with January 2026, when 6,834 units were recorded.
The segment displayed mixed regional performance. Urban markets experienced a sharper contraction, with retail declining 4.52% year-on-year. Rural markets, however, registered a modest increase of 1.57%, indicating that demand from non-urban infrastructure and development activities provided limited support to the segment.
Among all vehicle categories tracked in the dataset, construction equipment was the only one that failed to establish a new February retail record. This placed it in contrast with the broader automotive market, where demand remained robust across multiple segments.
Fuel Mix Dominated by Diesel
Fuel-type distribution within construction equipment continued to show overwhelming dependence on diesel powertrains. Diesel-powered machines accounted for 100% of retail in February 2026, consistent with January 2026 and largely unchanged compared with February 2025 levels of 99.04%.
The negligible presence of alternative fuels such as CNG, petrol-ethanol blends, or electric propulsion indicates that technological transition in the construction equipment sector remains limited. Diesel engines continue to dominate due to their reliability, torque characteristics, and suitability for heavy-duty applications.
OEM Market Share in Construction Equipment
In the construction equipment category, JCB India Limited maintained a commanding lead with retail sales of 3,377 units, translating to a market share of 50.25%. This marked a notable increase compared with 46.30% recorded in February 2025, suggesting stronger consolidation among leading manufacturers.
Action Construction Equipment ranked second with 699 units and a market share of 10.40%, although its share declined from 12.49% in the previous year. Ajax Engineering secured the third position with 470 units and a 6.99% share, nearly unchanged from 6.89% a year earlier.
Escorts Kubota followed with 443 units, representing 6.59% of the segment. Bull Machines recorded 223 units and a market share of 3.32%, improving from 2.63% in February 2025.
Other manufacturers such as Case New Holland, Tata Hitachi, Caterpillar India, Schwing Stetter, and Wirtgen India each accounted for between 1% and 3% of total retail. Smaller manufacturers collectively held 10.47% of the market, down significantly from 13.24% a year earlier, indicating a gradual shift toward established players.
India’s Auto Retail Market Achieves Record February
Despite weakness in construction equipment, the broader automotive market delivered a historic performance. Total vehicle retail across all segments reached 24,09,362 units in February 2026, compared with 19,17,934 units in February 2025. This represented a year-on-year growth of 25.62%.
Month-on-month retail declined 11.50% from January 2026 volumes of 27,22,558 units. However, this decline aligns with typical seasonal patterns because February is a shorter month.
Two-Wheelers and Passenger Vehicles Drive Growth
Two-wheelers continued to dominate overall retail volumes, registering 17,00,505 units in February 2026, a 25.02% increase compared with the previous year. Urban demand grew by 28.96%, while rural markets expanded by 22.16%.
Several factors supported the segment’s performance, including improved rural liquidity following favorable crop outcomes, attractive promotional schemes, improved affordability following GST adjustments, and demand linked to the ongoing marriage season.
Passenger vehicles also recorded strong growth, with retail reaching 3,94,768 units, up 26.12% year-on-year. Rural markets expanded faster at 34.21%, while urban areas grew by 21.12%. Demand for SUVs and utility vehicles remained the primary driver, though rural recovery also boosted entry-level car sales.
Commercial Vehicles, Three-Wheelers and Tractors Expand
Commercial vehicles recorded retail volumes of 1,00,820 units, reflecting growth of 28.89% compared with February 2025. Freight movement, increased e-commerce activity, and infrastructure-related logistics demand contributed to the expansion.
Within the segment, medium commercial vehicles recorded the fastest growth at 39.54%, while heavy commercial vehicles increased by 34.74% year-on-year.
Three-wheelers registered retail sales of 1,17,130 units, representing growth of 24.39%. The passenger sub-category expanded by 36.01%, while the personal-use category increased by 50.70%, albeit from a relatively small base.
Tractors emerged as the fastest-growing category in February 2026, reaching 89,418 units, up 36.35% compared with 65,579 units a year earlier. Mahindra & Mahindra, including its Swaraj division, led the tractor market with a combined share of around 43%, followed by International Tractors Limited and Escorts Kubota.
Year-to-Date Retail Performance and Market Outlook
For the financial year-to-date period from April 2025 to February 2026, total vehicle retail reached 2,69,52,913 units, representing growth of 12.13% compared with the same period in the previous financial year.
Tractors led the expansion with 19.66% growth, followed by two-wheelers at 12.00%, passenger vehicles at 11.82%, three-wheelers at 11.78%, and commercial vehicles at 11.34%. Construction equipment remained the only segment to register a year-to-date decline, falling 11.38% to 64,176 units.
According to Federation data insights, dealer sentiment remains broadly optimistic heading into March 2026. A member survey indicated that 75.51% of dealers expect growth in the coming month, while 19.90% anticipate stable conditions and only 4.59% foresee a decline.
Upcoming festivals including Navratri, Ramzan, Ugadi, Gudi Padwa, and Eid, along with financial year-end purchases, are expected to support retail demand. However, supply constraints in select models and evolving geopolitical developments remain factors that industry stakeholders continue to monitor.
For the March–May 2026 period, around 67.35% of dealers expect growth, reflecting a gradual transition toward a more stable market after the sharp demand rebound seen earlier in the year.
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