The Indian auto industry achieved its highest-ever May retail sales, reaching 25,31,067 units, marking a 9.55% year-on-year increase. Passenger vehicles experienced a significant growth of 23.25%, while two-wheelers, commercial vehicles, and three-wheelers saw growth rates of 7.54%, 5.29%, and 3.56%, respectively.
Despite challenges like a heatwave, fuel price pressures, and the evolving West Asia situation, the industry’s strong performance in May stood out. The Federation of Automobile Dealers Associations (FADA) highlighted that the 6.75% sequential softness was due to post-April seasonal moderation and a delayed south-west monsoon, making May primarily a pre-sowing month in many rain-fed regions of India.
In May, two-wheeler retail sales reached 18,44,947 units, showing a 7.54% year-on-year increase. Urban markets grew by 11.75%, while rural markets saw a 4.74% growth. Notably, there was a surge in consumer interest in fuel-efficient and alternative-powertrain options following the May fuel-price revision, leading to a rise in the 2W EV share to 9.25% from 6.11% a year ago.
The standout performer in May was the passenger vehicle segment, with retail sales hitting 4,02,591 units, marking a robust 23.25% expansion. Rural passenger vehicle sales grew by 30.35% year-on-year, surpassing urban growth at 18.80%. Dealers noted a revival in small cars alongside sustained SUV demand, healthy booking pipelines, and an increased focus on alternative-powertrain options, with CNG share at 23.34% and EV share at 6.63%.
