India, Feb. 10 -- Auto sales in January 2026 were at their highest since the festive season last year as the momentum brought on by GST rationalisation sustained for vehicles of all shapes and sizes.

A total of 27,22,558 vehicles were registered on the government's VAHAN portal last month - up 17.61% over the year-ago period, according to data compiled by the Federation of Automobile Dealers Associations. While the two-wheeler sales rose 20.82% year-on-year to 18,52,870 units, car sales increased 7.22% year-on-year to 5,13,475 units.

The GST momentum was supported by rural demand, especially due to harvest festivals of Pongal and Makar Sankranti as well as the ongoing wedding season. The demand comes with its own set of challenges, howe...