May Auto Sales Surge 9.5% YoY To 25.3 Lakh Units Despite Fuel Price Hike

The automotive sales recorded turned out to be best-ever May for three-wheelers, passenger vehicles, and tractors, according to  Federation of Automobile Dealers Associations (FADA). 

The PV retail sales in May grew by 23.25% year-on-year (YoY) to 4,02,591 units as compared with 3,26,656 units in the same period month last year.

Similarly, the 2W sales grew by 7.54% YoY to 18,44,947 units during the month as compared with 17,15,581 units in the same month last year.

The three-wheeler segment grew by 3.56% YoY to 1,11,526 units in May as compared to 1,07,688 units in the same month last year.

Meanwhile, Commercial vehicle (CV) sales grew by 5.29% YoY to 83,823 units last month as compared with 79,614 units in May 2025.

The grand total sales of all vehicles across categories grew 9.55% YoY to 25,31,067 units in May as against 23,10,451 units in the same month last year.

FADA President, C S Vigneshwar, said, "An above-normal heatwave, fuel-price pressure and the evolving West Asia situation — did come into play during May’26, and yet Indian auto retail has held its growth trajectory with May’26 registering the best ever May across 3W, PV, Tractors and Overall registrations."

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Meanwhile, the sequential softness of 6.75% month-on-month (MoM) reflects the customary post-April seasonal moderation and a delayed south-west monsoon, keeping May largely a pre-sowing month across much of rain-fed Bharat. That growth held through this confluence of pressures underlines the resilience of the underlying demand.

A notable feature of the month was the consumer response to the May fuel-price revision: dealers reported a visible rise in enquiries for fuel-efficient and alternative-powertrain options, reflected in the 2W EV share climbing to 9.25% from 6.11% a year ago.

Dealers pointed to a small-car revival co-existing with a sustained SUV mix, healthy booking pipelines and refreshed product launches, alongside a alternative-powertrain mix in which CNG share rose to 23.34% and EV share improved to 6.63%. 

Next 3 Months Outlook 

Looking at the June-July-August’26 period, dealer confidence firms up, with 59.07% of dealers now expecting growth — a meaningful improvement that signals greater conviction in the medium-term demand pulse as the monsoon advances, according to apex body of India's automotive retail industry. 

“The firmer reading suggests dealers expect the seasonal lull to give way to a stronger rural income cycle once Kharif sowing gathers pace,” FADA noted.