Auto Retail Sales Rise 9.5% in May, Led By Cars, Two-wheelers

Pune: Despite fuel-price pressure and the evolving West Asia situation, India's auto retail sales hit a record high for May, with overall registrations growing 9.55 per cent year-on-year to 25.31 lakh units, the Federation of Automobile Dealers Associations or Fada said on Monday.

The industry had recorded retail sales of 23.10 lakh units in May last year.

FADA said the performance marked the best-ever May sales for three-wheelers, passenger vehicles and tractors despite the month being seasonally weak.

“That growth held through the confluence of pressures underlines the resilience of the underlying demand,” said FADA President C S Vigneshwar.

Passenger vehicle retail sales rose 23.25 per cent to a record 4,02,591 units in May from 3,26,656 units in the year-ago period.

Two-wheeler retail sales also touched an all-time high of 18,44,947 units last month, up 7.54 per cent from 17,15,581 units in May last year.

Three-wheeler sales rose 3.56 per cent at 1,11,526 units last month as compared to 1,07,688 units in May 2025.

Commercial vehicles also witnessed a growth of 5.29 per cent to a record 83,823 units last month as compared to 79,614 units in May 2025.

The EV penetration crossed 11 per cent for the first time in May, as dealers saw a surge in enquiries for fuel-efficient and green vehicles after last month's fuel price hikes amid the West Asia crisis, FADA said.

It said dealers reported a visible rise in enquiries for fuel-efficient and alternative-powertrain options, reflected in the two-wheeler EV share climbing to 9.25 per cent from 6.11 per cent a year ago.

"Overall, the outlook for June 2026 appears measured but cautiously optimistic, with monsoon progress and rural cash flows expected to provide the structural support even as near-term cost pressures persist," FADA said.

Dealers attributed steady demand from commuters and rural buyers to marriage-season purchases and continued affordability under the GST 2.0 framework.

However, heatwave conditions affected showroom footfalls in several markets, while supply constraints for select models limited sales momentum.

FADA said the passenger vehicles are likely to draw on healthy booking pipelines going ahead, especially in the EV category and new launches, even as June settles into its usual seasonal rhythm, while commercial vehicles should stay steady on goods movement and infrastructure-linked activity.