New Delhi, Jan. 13 -- India's auto sector entered 2026 with strong momentum, building on a solid 2025. According to industry data, auto retail sales reached 28.16 million units in 2025, a 7.7% year-on-year growth.

This expansion was broad-based-passenger vehicles, two-wheelers, and commercial vehicles-supported by improving demand conditions.

In addition, government tax relief measures added another layer of support.

These fundamental improvements are now visible in market behaviour as well. Auto ancillary segments, particularly 2- and 3-wheeler ancillaries, are showing strong relative strength and are outperforming other industries, signalling rising investor interest across the auto supply chain.

Legendary investor Peter Lynch famou...