New Delhi: India’s automobile retail market held its ground in May 2026 despite a rather dramatic combination of heatwaves, fuel-price pressure and geopolitical uncertainty in West Asia. According to data released by the Federation of Automobile Dealers Associations, overall vehicle retail stood at 25,31,067 units, registering a 9.55% year-on-year growth and delivering the best-ever May performance for three-wheelers, passenger vehicles, tractors and overall registrations.
For a month usually known more for summer fatigue than showroom fireworks, May turned out to be surprisingly strong. Sequentially, however, the market softened by 6.75% month-on-month, reflecting the usual post-April moderation, delayed monsoon activity and the seasonal pause before Kharif sowing gains momentum.
Passenger vehicles emerged as the star performer of the month, with retails rising 23.25% YoY to 4,02,591 units. The growth was firmly led by Bharat, with rural PV demand surging 30.35% YoY, comfortably ahead of urban growth at 18.80%. Dealers reported a revival in small cars alongside continued strength in SUVs, proving that Indian buyers can appreciate both practicality and road presence—preferably with a sunroof involved.
FADA President Mr. C S Vigneshwar said the challenges flagged in April, including above-normal heatwave conditions, fuel-price pressure and the West Asia situation, did affect May performance. However, the market still delivered strong growth, underlining the resilience of underlying demand. He noted that PVs and tractors led the market, while two-wheelers, commercial vehicles and three-wheelers also posted positive year-on-year growth. Wheeled construction equipment, however, declined 17.51%, largely due to a high base.
Two-wheeler retails stood at 18,44,947 units, up 7.54% YoY. Urban markets grew 11.75%, while rural markets rose 4.74%. Dealers attributed the performance to steady commuter demand, marriage-season purchases and affordability support, though extreme heat kept some buyers away from showrooms. After all, even the most determined motorcycle buyer may reconsider a test ride when the seat feels like a tawa.
The May fuel-price revision also accelerated interest in alternative powertrains. The two-wheeler EV share climbed to 9.25%, compared with 6.11% a year earlier. In passenger vehicles, EV share improved to 6.63%, while CNG share rose sharply to 23.34%. Overall EV penetration crossed 11% for the first time, marking the best-ever month for EV penetration across commercial vehicles, passenger vehicles and the overall market.
Commercial vehicle retails grew 5.29% YoY to 83,823 units, with rural markets again outperforming urban centres. Rural CV sales rose 8.10%, while urban sales increased 2.62%. Light commercial vehicles led the segment with 7.66% growth, supported by steady freight movement, e-commerce demand and replacement purchases. Dealers, however, flagged longer financing turnaround times, higher freight and insurance costs, and cautious buyer sentiment due to West Asia-related uncertainties.
Tractor retails rose 11.17% YoY to 83,092 units, supported by healthy farm economics and expectations around rural cashflows. The performance reinforces the importance of the agricultural economy in sustaining automotive demand, especially when urban markets face cost pressures.
Three-wheeler retail also posted growth, rising 3.56% YoY to 1,11,526 units, contributing to the best-ever May performance for the segment. Wheeled construction equipment, meanwhile, fell to 5,088 units, down 17.51% YoY, continuing to correct from a high base.
The broader macroeconomic backdrop remained supportive. FADA highlighted India’s FY26 GDP growth of 7.7%, Q4 growth of 7.8%, the RBI keeping the repo rate unchanged at 5.25%, and GST collections of ₹1.94 lakh crore as key confidence indicators for the industry.
However, inventory remains a watchpoint, particularly in passenger vehicles. PV inventory rose to 31–33 days at the end of May, up from 28–30 days at the end of April. This is moving away from FADA’s recommended 21-day benchmark, prompting the dealer body to urge OEMs to maintain dispatch discipline during the seasonally softer June window.
Looking ahead to June 2026, dealer sentiment remains measured but positive. According to FADA’s survey, 50.52% of dealers expect growth, 39.90% expect a flat market, and only 9.59% anticipate de-growth. Demand is expected to be supported by monsoon progress, early Kharif sowing preparation and the tail end of the marriage season.
For the next three months, covering June to August 2026, confidence appears firmer. Around 59.07% of dealers expect growth, while 33.42% expect the market to remain flat and 7.51% foresee de-growth. The monsoon, rural cashflows and improving agricultural activity are expected to anchor demand into the second quarter.
FADA’s survey also showed that 45.60% of dealers rated liquidity as good, while 43.52% called it neutral. On sentiment, 48.70% of dealers remained neutral, 37.05% were positive, and 14.25% expressed concern.
Overall, May 2026 proved that India’s auto retail market can keep moving even when the weather, fuel prices and global tensions all decide to test its suspension setup at once. With rural demand powering ahead, alternative fuels gaining traction and dealers cautiously optimistic, the industry appears set to move from a hot and hesitant summer patch toward a firmer monsoon-backed second quarter.
Charts showing Vehicle Retail Data for various period
All India Vehicle Retail Data for FY’26 YTD (Apr’26 to May’26)
| CATEGORY | YTD FY’27 | YTD FY’26 | YoY % |
| 2W | 38,32,828 | 34,65,874 | 10.59% |
| 3W | 2,21,630 | 2,10,380 | 5.35% |
| CV | 1,86,464 | 1,69,061 | 10.29% |
| Wheeled CE | 11,690 | 12,825 | -8.85% |
| PV | 8,31,325 | 7,04,679 | 17.97% |
| TRAC | 1,61,512 | 1,37,863 | 17.15% |
| Total | 52,45,449 | 47,00,682 | 11.59% |
Source: FADA Research
All India Vehicle Retail Data for May’26
| CATEGORY | May’26 | Apr’26 | May’25 | MoM% | YoY% |
| 2W | 18,44,947 | 19,87,881 | 17,15,581 | -7.19% | 7.54% |
| 3W | 1,11,526 | 1,10,104 | 1,07,688 | 1.29% | 3.56% |
| E-RICKSHAW(P) | 29,812 | 28,138 | 40,619 | 5.95% | -26.61% |
| E-RICKSHAW WITH CART (G) | 7,487 | 7,749 | 7,961 | -3.38% | -5.95% |
| THREE-WHEELER (GOODS) | 13,482 | 13,754 | 10,766 | -1.98% | 25.23% |
| THREE-WHEELER (PASSENGER) | 60,643 | 60,351 | 48,206 | 0.48% | 25.80% |
| THREE-WHEELER (PERSONAL) | 102 | 112 | 136 | -8.93% | -25.00% |
| PV | 4,02,591 | 4,28,734 | 3,26,656 | -6.10% | 23.25% |
| TRAC | 83,092 | 78,420 | 74,744 | 5.96% | 11.17% |
| Wheeled CE | 5,088 | 6,602 | 6,168 | -22.93% | -17.51% |
| CV | 83,823 | 1,02,641 | 79,614 | -18.33% | 5.29% |
| LCV | 50,348 | 58,055 | 46,766 | -13.28% | 7.66% |
| MCV | 7,630 | 9,453 | 7,287 | -19.28% | 4.71% |
| HCV | 25,797 | 35,089 | 25,510 | -26.48% | 1.13% |
| Others | 48 | 44 | 51 | 9.09% | -5.88% |
| Total | 25,31,067 | 27,14,382 | 23,10,451 | -6.75% | 9.55% |
Source: FADA Research
Chart showing Fuel Wise Vehicle Retail Market Share for May’26
All India Fuel Wise Vehicle Retail Data for May’26
| Two-Wheeler | May’26 | Apr’26 | May’25 | Three-Wheeler | May’26 | Apr’26 | May’25 | |
| PETROL/ETHANOL | 90.68% | 92.01% | 93.67% | EV | 64.45% | 59.17% | 61.46% | |
| EV | 9.25% | 7.92% | 6.11% | CNG/LPG | 22.08% | 25.44% | 26.75% | |
| CNG/LPG | 0.07% | 0.07% | 0.22% | DIESEL | 13.04% | 14.98% | 11.35% | |
| Total | 100% | 100% | 100% | PETROL/ETHANOL | 0.43% | 0.41% | 0.44% | |
| Total | 100% | 100% | 100% | |||||
| Commercial Vehicle | May’26 | Apr’26 | May’25 | Wheeled Construction Equipment | May’26 | Apr’26 | May’25 | |
| Diesel | 81.12% | 82.68% | 83.50% | Diesel | 100% | 99.73% | 99.79% | |
| CNG/LPG | 12.39% | 11.75% | 11.10% | CNG/LPG | 0.0% | 0.24% | 0.00% | |
| PETROL/ETHANOL | 3.58% | 3.25% | 3.94% | PETROL/ETHANOL | 0.0% | 0.03% | 0.00% | |
| EV | 2.86% | 2.26% | 1.37% | EV | 0.0% | 0.00% | 0.21% | |
| HYBRID | 0.05% | 0.06% | 0.08% | Total | 100% | 100% | 100% | |
| Total | 100% | 100% | 100% | |||||
| Passenger Vehicle | May’26 | Apr’26 | May’25 | Tractor | May’26 | Apr’26 | May’25 | |
| PETROL/ETHANOL | 45.76% | 45.71% | 48.15% | Diesel | 99.99% | 99.99% | 99.99% | |
| Diesel | 16.23% | 17.75% | 19.32% | PETROL/ETHANOL | 0.01% | 0.00% | 0.00% | |
| CNG/LPG | 23.34% | 22.18% | 19.93% | EV | 0.00% | 0.01% | 0.00% | |
| HYBRID | 8.05% | 8.25% | 8.09% | Total | 100% | 100% | 100% | |
| EV | 6.63% | 6.11% | 4.51% | |||||
| Total | 100% | 100% | 100% |
All India Vehicle Retail Strength YoY and MOM comparison for May’26.
| Category | MoM% | YoY% | Category | MoM% | YoY% |
| 2W | CV | ||||
| Urban | -6.75% | 11.75% | Urban | -19.15% | 2.62% |
| Rural | -7.50% | 4.74% | Rural | -17.50% | 8.10% |
| Total | -7.19% | 7.54% | Total | -18.33% | 5.29% |
| 3W | Wheeled CE | ||||
| Urban | -2.09% | -2.47% | Urban | -24.97% | -20.42% |
| Rural | 4.02% | 8.67% | Rural | -21.33% | -15.18% |
| Total | 1.29% | 3.56% | Total | -22.93% | -17.51% |
| PV | TRAC | ||||
| Urban | -6.39% | 18.80% | Urban | 0.52% | 7.55% |
| Rural | -5.67% | 30.35% | Rural | 7.19% | 11.97% |
| Total | -6.10% | 23.25% | Total | 5.96% | 11.17% |
| Total | |||||
| Urban | -6.97% | 11.95% | |||
| Rural | -6.58% | 7.74% | |||
| Total | -6.75% | 9.55% |
Source: FADA Research
Disclaimer:
- Vehicle Retail Data has been collated as on 05.06.26 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,464 out of 1,467 RTOs.
- Commercial Vehicle is subdivided in the following manner
- LCV – Light Commercial Vehicle (incl. Passenger & Goods Vehicle)
- MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
- HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
- 3-Wheeler is sub-divided in the following manner
- E-Rickshaw – Passenger
- E-Rickshaw – Goods
- 3-Wheeler – Goods
- 3-Wheeler – Passenger
- 3-Wheeler – Personal
- For the month of May’26, Vehicle Registration Data for 3W, CV and Trac categories are not available for Telangana (TS)
OEM wise Market Share Data for May’26 (YoY comparison)
| Two-Wheeler OEM | May’26 | Market Share (%) May’26 | May’25 | Market Share (%) May’25 |
| HERO MOTOCORP LTD | 5,17,951 | 28.07% | 5,07,323 | 29.57% |
| HONDA MOTORCYCLE AND SCOOTER INDIA (P) LTD | 4,52,420 | 24.52% | 4,13,597 | 24.11% |
| TVS MOTOR COMPANY LTD | 3,56,352 | 19.32% | 3,19,518 | 18.62% |
| BAJAJ AUTO GROUP | 1,97,738 | 10.72% | 1,93,944 | 11.30% |
| BAJAJ AUTO LTD | 1,97,738 | 10.72% | 1,93,944 | 11.30% |
| CHETAK TECHNOLOGY LIMITED | – | 0.00% | – | 0.00% |
| SUZUKI MOTORCYCLE INDIA PVT LTD | 97,885 | 5.31% | 93,114 | 5.43% |
| ROYAL-ENFIELD (UNIT OF EICHER LTD) | 84,480 | 4.58% | 81,672 | 4.76% |
| INDIA YAMAHA MOTOR PVT LTD | 60,625 | 3.29% | 52,041 | 3.03% |
| ATHER ENERGY LTD | 28,240 | 1.53% | 14,101 | 0.82% |
| OLA ELECTRIC TECHNOLOGIES PVT LTD | 15,141 | 0.82% | 18,967 | 1.11% |
| GREAVES ELECTRIC MOBILITY LTD | 7,695 | 0.42% | 4,325 | 0.25% |
| CLASSIC LEGENDS PVT LTD | 4,447 | 0.24% | 2,190 | 0.13% |
| RIVER MOBILITY PVT LTD | 3,720 | 0.20% | 1,078 | 0.06% |
| BGAUSS AUTO PRIVATE LIMITED | 3,297 | 0.18% | 1,082 | 0.06% |
| PIAGGIO VEHICLES PVT LTD | 3,056 | 0.17% | 2,564 | 0.15% |
| Others Including EV | 11,900 | 0.65% | 10,065 | 0.59% |
| Total | 18,44,947 | 100% | 17,15,581 | 100% |
Source: FADA Research
Disclaimer:
- Vehicle Retail Data has been collated as on 05.06.26 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,464 out of 1,467 RTOs.
- Others include OEMs accounting less than 0.1% Market Share.
| Three-Wheeler OEM | May’26 | Market Share (%) May’26 | May’25 | Market Share (%) May’25 |
| BAJAJ AUTO LTD | 39,096 | 35.06% | 37,374 | 34.71% |
| MAHINDRA & MAHINDRA LIMITED | 11,790 | 10.57% | 7,221 | 6.71% |
| MAHINDRA LAST MILE MOBILITY LTD | 11,765 | 10.55% | 7,180 | 6.67% |
| MAHINDRA & MAHINDRA LIMITED | 25 | 0.02% | 41 | 0.04% |
| PIAGGIO VEHICLES PVT LTD | 7,749 | 6.95% | 6,494 | 6.03% |
| TVS MOTOR COMPANY LTD | 5,931 | 5.32% | 3,551 | 3.30% |
| ATUL AUTO LTD | 2,564 | 2.30% | 2,059 | 1.91% |
| YC ELECTRIC VEHICLE | 2,270 | 2.04% | 3,678 | 3.42% |
| DILLI ELECTRIC AUTO PVT LTD | 1,501 | 1.35% | 1,735 | 1.61% |
| SAERA ELECTRIC AUTO PVT LTD | 1,458 | 1.31% | 2,003 | 1.86% |
| J. S. AUTO (P) LTD | 1,179 | 1.06% | 1,028 | 0.95% |
| Others including EV | 37,988 | 34.06% | 42,545 | 39.51% |
| Total | 1,11,526 | 100% | 1,07,688 | 100% |
Source: FADA Research
Disclaimer:
- For the month of May’26 numbers for 3W category are not available for Telangana (TS).
- Vehicle Retail Data has been collated as on 05.06.26 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,464 out of 1,467 RTOs.
- Others include OEMs accounting less than 1% Market Share.
.
| Commercial Vehicle OEM | May’26 | Market Share (%) May’26 | May’25 | Market Share (%) May’25 |
| TATA MOTORS LTD | 29,603 | 35.32% | 27,013 | 33.93% |
| MAHINDRA & MAHINDRA LIMITED | 22,307 | 26.61% | 20,326 | 25.53% |
| MAHINDRA & MAHINDRA LIMITED | 20,662 | 24.65% | 18,845 | 23.67% |
| MAHINDRA LAST MILE MOBILITY LTD | 1,645 | 1.96% | 1,481 | 1.86% |
| ASHOK LEYLAND LTD | 14,812 | 17.67% | 14,842 | 18.64% |
| ASHOK LEYLAND LTD | 14,598 | 17.42% | 14,717 | 18.49% |
| SWITCH MOBILITY AUTOMOTIVE LTD | 214 | 0.26% | 125 | 0.16% |
| VE COMMERCIAL VEHICLES LTD | 7,227 | 8.62% | 7,179 | 9.02% |
| VE COMMERCIAL VEHICLES LTD | 7,165 | 8.55% | 7,117 | 8.94% |
| VE COMMERCIAL VEHICLES LTD (VOLVO BUSES DIVISION) | 62 | 0.07% | 62 | 0.08% |
| MARUTI SUZUKI INDIA LTD | 3,636 | 4.34% | 3,195 | 4.01% |
| DAIMLER INDIA COMMERCIAL VEHICLES PVT. LTD | 1,888 | 2.25% | 1,840 | 2.31% |
| FORCE MOTORS LIMITED | 1,651 | 1.97% | 2,316 | 2.91% |
| SML MAHINDRA LTD | 1,516 | 1.81% | 1,639 | 2.06% |
| Others | 1,183 | 1.41% | 1,264 | 1.59% |
| Total | 83,823 | 100.00% | 79,614 | 100.00% |
Source: FADA Research
Disclaimer:
- For the month of May’26 numbers for CV category are not available for Telangana (TS).
- Vehicle Retail Data has been collated as on 05.06.26 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,464 out of 1,467 RTOs.
- Others include OEMs accounting less than 1% Market Share.
| Wheeled Construction Equipment OEM | May’26 | Market Share (%) May’26 | May’25 | Market Share (%) May’25 |
| JCB INDIA LIMITED | 2,265 | 44.52% | 2,414 | 39.14% |
| ACTION CONSTRUCTION EQUIPMENT LTD. | 632 | 12.42% | 712 | 11.54% |
| ESCORTS KUBOTA LIMITED (CONSTRUCTION EQUIPMENT) | 401 | 7.88% | 378 | 6.13% |
| AJAX ENGINEERING LTD | 388 | 7.63% | 465 | 7.54% |
| BULL MACHINES PVT LTD | 179 | 3.52% | 139 | 2.25% |
| CASE NEW HOLLAND CONSTRUCTION EQUIPMENT(I) PVT LTD | 128 | 2.52% | 180 | 2.92% |
| TATA HITACHI CONSTRUCTION MACHINERY COMP. PVT LTD | 120 | 2.36% | 222 | 3.60% |
| CATERPILLAR INDIA PRIVATE LIMITED | 115 | 2.26% | 168 | 2.72% |
| M/S SCHWING STETTER (INDIA) PRIVATE LIMITED | 104 | 2.04% | 109 | 1.77% |
| ALL TERRAIN CRANE | 71 | 1.40% | 103 | 1.67% |
| LIUGONG INDIA PVT. LTD | 71 | 1.40% | 148 | 2.40% |
| Others | 614 | 12.07% | 1,130 | 18.32% |
| Total | 5,088 | 100.00% | 6,168 | 100.00% |
Source: FADA Research
Disclaimer:
- Vehicle Retail Data has been collated as on 05.06.26 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,464 out of 1,467 RTOs.
- Others include OEMs accounting less than 1% Market Share.
| PV OEM | May’26 | Market Share (%) May’26 | May’25 | Market Share (%) May’25 |
| MARUTI SUZUKI INDIA LTD | 1,64,925 | 40.97% | 1,23,714 | 37.87% |
| TATA MOTORS LTD | 55,544 | 13.80% | 39,888 | 12.21% |
| MAHINDRA & MAHINDRA LIMITED | 51,311 | 12.75% | 46,464 | 14.22% |
| HYUNDAI MOTOR INDIA LTD | 46,223 | 11.48% | 40,979 | 12.55% |
| TOYOTA KIRLOSKAR MOTOR PVT LTD | 26,294 | 6.53% | 24,726 | 7.57% |
| KIA INDIA PRIVATE LIMITED | 24,644 | 6.12% | 18,450 | 5.65% |
| SKODA AUTO VOLKSWAGEN GROUP | 8,380 | 2.08% | 9,374 | 2.87% |
| SKODA AUTO VOLKSWAGEN INDIA PVT LTD | 8,334 | 2.07% | 9,328 | 2.86% |
| VOLKSWAGEN AG/INDIA PVT. LTD. | 39 | 0.01% | 14 | 0.00% |
| AUDI AG | 4 | 0.00% | 32 | 0.01% |
| SKODA AUTO INDIA/AS PVT LTD | 3 | 0.00% | – | 0.00% |
| JSW MG MOTOR INDIA PVT LTD | 5,861 | 1.46% | 5,966 | 1.83% |
| HONDA CARS INDIA LTD | 4,489 | 1.12% | 4,529 | 1.39% |
| RENAULT INDIA PVT LTD | 4,217 | 1.05% | 2,472 | 0.76% |
| NISSAN MOTOR INDIA PVT LTD | 2,959 | 0.73% | 1,605 | 0.49% |
| BMW INDIA PVT LTD | 1,371 | 0.34% | 1,173 | 0.36% |
| MERCEDES -BENZ GROUP | 1,327 | 0.33% | 1,519 | 0.47% |
| MERCEDES-BENZ INDIA PVT LTD | 1,095 | 0.27% | 1,431 | 0.44% |
| MERCEDES -BENZ AG | 229 | 0.06% | 88 | 0.03% |
| DAIMLER AG | – | 0.00% | – | 0.00% |
| MERCEDES BENZ | 3 | 0.00% | – | 0.00% |
| VINFAST AUTO INDIA PVT LTD | 1,238 | 0.31% | – | 0.00% |
| STELLANTIS GROUP | 851 | 0.21% | 732 | 0.22% |
| STELLANTIS AUTOMOBILES INDIA PVT LTD | 643 | 0.16% | 431 | 0.13% |
| STELLANTIS INDIA PVT LTD | 208 | 0.05% | 301 | 0.09% |
| FORCE MOTORS LIMITED | 726 | 0.18% | 472 | 0.14% |
| BYD INDIA PRIVATE LIMITED | 686 | 0.17% | 621 | 0.19% |
| JAGUAR LAND ROVER INDIA LIMITED | 363 | 0.09% | 409 | 0.13% |
| Others | 1,182 | 0.29% | 3,563 | 1.09% |
| Total | 4,02,591 | 100.0% | 3,26,656 | 100.0% |
Source: FADA Research
Disclaimer:
- Vehicle Retail Data has been collated as on 05.06.26 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,464 out of 1,467 RTOs.
| Tractor OEM | May’26 | Market Share (%) May’26 | May’25 | Market Share (%) May’25 |
| MAHINDRA & MAHINDRA LIMITED (TRACTOR) | 19,077 | 22.96% | 16,519 | 22.10% |
| MAHINDRA & MAHINDRA LIMITED (SWARAJ DIVISION) | 15,205 | 18.30% | 13,649 | 18.26% |
| INTERNATIONAL TRACTORS LIMITED | 11,120 | 13.38% | 9,865 | 13.20% |
| TAFE LIMITED | 10,659 | 12.83% | 7,503 | 10.04% |
| ESCORTS KUBOTA LIMITED (AGRI MACHINERY GROUP) | 9,539 | 11.48% | 8,172 | 10.93% |
| JOHN DEERE INDIA PVT LTD (TRACTOR DEVISION) | 6,039 | 7.27% | 5,900 | 7.89% |
| EICHER TRACTORS | 4,922 | 5.92% | 4,450 | 5.95% |
| CNH INDUSTRIAL (INDIA) PVT LTD | 3,857 | 4.64% | 3,103 | 4.15% |
| Others | 2,674 | 3.22% | 5,583 | 7.47% |
| Total | 83,092 | 100% | 74,744 | 100% |
Source: FADA Research
Disclaimer:
- The For the month of May’26 numbers for Trac category are not available for Telangana (TS).
- Vehicle Retail Data has been collated as on 05.06.26 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,464 out of 1,467 RTOs.
- Others include OEMs accounting less than 1% Market Share.
