SRINAGAR: Automobile retail sales in Jammu and Kashmir opened 2026 on a strong footing, with overall vehicle registrations rising by nearly 10 per cent year-on-year in January, signalling steady consumer demand and increased economic activity across segments, according to industry data released by the Federation of Automobile Dealers Associations (FADA) Jammu.
Total retail vehicle sales in the Union Territory stood at 14,470 units in January 2026, compared to 13,161 units in the same month last year, registering a growth of 9.95 per cent.
Passenger vehicles and commercial vehicles led the expansion, while two-wheelers posted moderate gains. Passenger vehicle sales rose 9.83 per cent to 6,962 units from 6,339 units a year ago. Commercial vehicle sales recorded the sharpest jump of 30.69 per cent, increasing to 1,056 units from 808 units, indicating stronger transport and business activity.
Two-wheeler sales grew 8.64 per cent to 4,978 units compared to 4,582 units last January, while three-wheelers increased 7.81 per cent to 1,091 units from 1,012 units.
However, some segments witnessed a dip. Construction equipment sales fell 22.22 per cent to 28 units from 36 units, and tractor sales declined 7.55 per cent to 355 units from 384 units, reflecting slower demand in certain rural and infrastructure-linked categories.
Industry representatives said the growth in vehicle registrations is also expected to boost government revenues through road taxes and indirect taxes linked to automobile sales.
FADA Jammu said that proposals submitted to the government during pre-budget consultations could further accelerate the sector’s contribution to the exchequer. The association has projected that suggested policy measures could generate additional vehicle sales of up to 14 per cent, translating into an estimated Rs 166 crore in Road Tax and around Rs 149 crore through State GST collections.
Commenting on the performance, Sanjay Aggarwal, Chairperson, FADA Jammu, said January sales reflected “cautious optimism” in the market.
“January 2026 showed a decent growth of 9.95 per cent year-on-year. Improved vehicle availability, better financing options and seasonal demand supported momentum across segments. While passenger vehicles, especially SUVs, continue to perform well and commercial vehicle growth points to rising economic activity, sustaining this trajectory will depend on stable interest rates, improved rural liquidity and supportive policy measures,” Aggarwal said.
