India’s automobile retail sales grew 9.55% to a record 25,31,067 units in May, while EV penetration crossed 11% 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 said on Monday. The cumulative automobile retail sales in India stood at 23,10,451 units in the same month last year. According to the Federation of Automobile Dealers Associations (FADA), the figures reflect the best May performance ever recorded across commercial (CV), passenger vehicle (PV) and the overall EV penetration. 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. -Fada Both 4W 2W sales speed up to record highs Passenger vehicles retail sales were at a record 4,02,591 units last month as compared to 3,26,656 units in May 2025, a growth of 23.25%, data showed. Two-wheelers also clocked best-ever monthly numbers at 18,44,947 units in May this year as compared to 17,15,581 units in the same month a year ago, a growth of 7.54%. FADA further said three-wheeler sales stood at 1,11,526 units last month as compared to 1,07,688 units in May 2025, up 3.56%. Commercial vehicles also witnessed a growth of 5.29% to a record 83,823 units last month as compared to 79,614 units in May 2025, it added. Overall, the outlook for June 2026 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. -Fada New GST rates play a part in record auto sales Dealers attributed the steady participation from commuters and rural buyers to marriage-season buying and continued affordability under the GST 2.0 framework to drive auto sector sales. As anticipated in our April 2026 release, the watch-outs we had flagged — an above-normal heat wave, 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 26 registering the best ever May across 3W, PV, tractors and overall registrations. -Fada, president, C S Vigneshwar Post navigation ‘Citizens diverting more and more savings towards Indian stock markets’:Capital markets increasingly emerging as core avenue for household savings, says Sebi IndiGo targets 20 crore annual passenger traffic by FY30:Plans to fly more than 550 aircraft
