India’s overall retail automobile sales increased by 9.55 per cent year-over-year (YoY) to a record 25,31,067 units in May despite an alteration in fuel prices, according to the report released by the Federation of Automobile Dealers Associations (FADA) on Monday.
In the same month last year, India’s total retail automobile sales were 23,10,451 units.
The retail sales results show that May was the best month ever for three-wheelers, passenger vehicles, and tractors—a good result for what is often a slow month.
The two-wheeler EV share increased to 9.25 per cent from 6.11 per cent a year ago, indicating a noticeable increase in inquiries for fuel-efficient and alternative-powertrain choices, according to dealers.
Retail sales of passenger cars (PVs) reached a record 4,02,591 units last month, up 23.25 per cent from 3,26,656 units in May 2025, as per the report.
Additionally, two-wheelers had their highest-ever monthly numbers in May this year with 18,44,947 units, up 7.54 per cent from 17,15,581 units in the same month last year.
The report added that sales of three-wheelers increased by 3.56 per cent to 1,11,526 units last month from 1,07,688 units in May 2025.
Furthermore, it stated that the number of commercial vehicles increased by 5.29 per cent to a record 83,823 units last month from 79,614 units in May 2025.
CS Vigneshwar, president, FADA, said as anticipated in our April 2026 release, the watch-outs we had flagged — an 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.
“The industry retailed 25,31,067 units during the month, a 9.55 per cent YoY expansion, with passenger vehicles at +23.25 per cent and tractors at +11.17 per cent leading the way, followed by two-wheelers at +7.54 per cent, commercial vehicles at +5.29 per cent and three-wheelers at +3.56 per cent, while wheeled construction equipment declined 17.51 per cent on a high base. The sequential softness of 6.75 per cent MoM reflects the customary post-April seasonal moderation and a delayed southwest monsoon, keeping May largely a pre-sowing month across much of rain-fed Bharat”, he said.
Looking ahead to June 2026, 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.
