Indian auto retail records strongest May performance

The Federation of Automobile Dealers Associations (FADA) reported that India's auto retail industry achieved its highest-ever May performance in 2026, overcoming challenges such as above-normal heatwaves, fuel-price pressures, and geopolitical uncertainties in West Asia.

Total vehicle registrations stood at 25,31,067 units, reflecting a 9.55% year-on-year increase.

PVs led the growth with a 23.25% rise to 4,02,591 units, supported by strong rural demand (+30.35%) compared to urban (+18.80%).

Tractors followed with an 11.17% increase, while 2Ws grew 7.54% to 18,44,947 units. Urban 2Ws sales expanded 11.75% against rural growth of 4.74%.

A key development during the month was the consumer response to the May fuel-price revision. Dealers reported heightened interest in fuel-efficient and alternative powertrain options, with EV 2Ws rising to a 9.25% share from 6.11% a year earlier.

CVs registered 83,823 units, up 5.29% year-on-year, with rural markets (+8.10%) outpacing urban (+2.62%). 3Ws grew modestly at 3.56%, while Wheeled Construction Equipment declined 17.51% due to a high base effect.

This performance underscores the resilience of India's auto retail sector, with broad-based growth across categories and a clear shift in consumer preference toward sustainable mobility solutions.

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