Record May for auto industry, but price hikes may test demand ahead

Auto sales hit record May highs as passenger vehicle volumes cross 4.38 lakh units, with all major vehicle segments posting double-digit growth amid a lower base effect, reduced GST rates and easier financing conditions, according to data released by the Society of Indian Automobile Manufacturers (SIAM). Passenger vehicle sales rose 27.3% year-on-year to 4,38,854 units in May from 3,44,656 units a year earlier.  

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The growth extended beyond passenger vehicles. Two-wheeler sales increased 14.8% to 19,02,209 units from 16,57,116 units in May 2025, while three-wheeler sales jumped 31.1% to 70,720 units from 53,942 units during the same period.  

“Passenger Vehicles, Three-Wheelers and Two-Wheelers recorded the highest ever sales of May in 2026,” SIAM Director General Rajesh Menon said, adding that lower GST rates, easier financing and the lower base of the previous year contributed to the higher offtake seen during the month.  

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Within the two-wheeler market, scooters outperformed motorcycles by a wide margin. Scooter sales rose 27.4% to 7,39,667 units from 5,80,696 units a year ago, while motorcycle sales grew 7.2% to 11,13,973 units from 10,39,156 units. Moped sales increased 30.3% to 48,569 units.  

Three-wheelers emerged as the fastest-growing category, led by passenger carriers and goods carriers. Passenger carrier sales climbed 30% to 57,649 units, while goods carrier sales rose 35.3% to 11,802 units. E-rickshaw sales also grew 38.9% to 1,000 units during the month.