The automobile retail sales have recorded the best-ever May in overall registrations including passenger vehicles (PVs), two-wheelers (2Ws) and three-wheelers (3Ws), the Federation of Automobile Dealers Associations (FADA) said on Monday.

Significantly, the electric vehicle (EV) penetration crossed 11 per cent for the first time, 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 noted.

“A notable feature of the month was the consumer response to May fuel-price revisions: 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 alternative fuel share rose to 38 per cent+ in May,” CS Vigneshwar, President, FADA, said.

On the channel side, PV inventory edged up to a range of 31-33 days at May-end from 28-30 days at the close of April. Inventory is now moving away from FADA’s recommended 21-day benchmark, he said. “We urge PV original equipment manufacturers (OEMs) to maintain disciplined dispatches through the seasonally-softer June window so that channel stocks stay closely aligned with retail demand,” he added.

Vehicle sales

Overall, the grand total of all vehicles across categories grew 9.55 per cent year on year to 25,31,067 units in May as compared with 23,10,451 units in the same month last year.

The PV retail sales in May grew 23.25 per cent to 4,02,591 units (3,26,656 units), FADA said in its monthly sales report.

Similarly, the 2W sales grew 7.54 per cent to 18,44,947 units (17,15,581 units).

The 3W segment grew 3.56 per cent to 1,11,526 units (1,07,688 units).

Commercial vehicle (CV) sales grew 5.29 per cent to 83,823 units (79,614 units).

“Above-normal heatwave, fuel-price pressure and the evolving West Asia situation did come into play during May 2026, and yet Indian auto retail has held its growth trajectory with May 2026 registering the best-ever May across 3W, PV, Tractors and overall registrations,” Vigneshwar said.

In June, dealer sentiment is measured, with 50.52 per cent of dealers expecting growth, 39.90 per cent anticipating a flat market and only 9.59 per cent foreseeing a decline, he noted, adding that June 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.

“With the South-West monsoon having set in over Kerala on June 4, and beginning its northward advance, demand expectations are anchored in the progress of the monsoon, early Kharif sowing preparation and the tail of the marriage season, supported by a stable financing environment after the Reserve Bank of India held the repo rate at 5.25 per cent in its June review,” Vigneshwar added.

Published on June 8, 2026