Auto retail sees 9.55pc YOY expansion in May 2026, says FADA

Reflecting on May 2026 Auto Retail performance, FADA President C S Vigneshwar said: “As anticipated in our April’26 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’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. The industry retailed 25,31,067 units during the month, a 9.55% YoY expansion, with Passenger Vehicles at +23.25% and Tractors at +11.17% leading the way, followed by Two-Wheelers at +7.54%, Commercial Vehicles at +5.29% and Three-Wheelers at +3.56%, while Wheeled Construction Equipment declined 17.51% on a high base”.

“The sequential softness of 6.75% 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,” he noted.

“Looking ahead to June’26, dealer sentiment is measured, with 50.52% of dealers expecting growth, 39.90% anticipating a flat market and only 9.59% foreseeing a decline. With the south-west monsoon having set in over Kerala on 4th June 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% in its June review,” he added. .

All India Vehicle Retail Data for May’26

Source: FADA Research