India’s automobile industry recorded strong growth across key vehicle segments in May 2026, with passenger vehicle (PV) dispatches rising 27.3 per cent year-on-year to a record 4,38,854 units, according to data released by the Society of Indian Automobile Manufacturers (SIAM).
The industry body said May 2026 marked the highest-ever sales recorded for the month across the passenger vehicle, two-wheeler, and three-wheeler segments, highlighting sustained consumer demand and improved market sentiment.
Three-wheeler sales grew 31.1 per cent year-on-year to 70,720 units, compared to 53,942 units in May 2025. Meanwhile, domestic two-wheeler sales increased 14.8 per cent to 19,02,209 units from 16,57,116 units in the corresponding period last year.
Overall production of passenger vehicles, two-wheelers, three-wheelers, and quadricycles stood at 29,27,711 units during the month.
Utility Vehicles Continue to Drive PV Growth
Within the passenger vehicle segment, utility vehicles remained the primary growth engine, with domestic sales rising 24.8 per cent to 2,45,549 units in May 2026, compared to 1,96,821 units a year earlier.
Passenger car sales registered a robust 28.8 per cent increase to 1,20,975 units from 93,951 units, while van sales grew 7.4 per cent to 13,240 units from 12,327 units in May 2025.
Strong Momentum Across Two- and Three-Wheeler Segments
In the two-wheeler category, scooter sales surged 27.4 per cent year-on-year to 7,39,667 units, while motorcycle sales rose 7.2 per cent to 11,13,973 units. Moped sales recorded a significant 30.3 per cent increase, reaching 48,569 units.
The three-wheeler segment also posted strong growth, with passenger carrier sales climbing 30 per cent to 57,649 units. Goods carriers registered a 35.3 per cent increase to 11,802 units.
Electric three-wheelers continued to gain traction, with e-rickshaw sales rising 38.9 per cent to 1,000 units, while e-cart sales jumped 81.8 per cent year-on-year to 269 units.
Demand Supported by GST Reduction and Easier Financing
Commenting on the performance, Rajesh Menon, Director General, SIAM, said the industry achieved its highest-ever May sales across all major vehicle categories.
“Passenger Vehicles, Three-Wheelers and Two-Wheelers recorded highest-ever sales for the month of May in 2026, with strong double-digit growth across all segments. Passenger Vehicles recorded sales of 4.39 lakh units, registering a growth of 27.3 per cent over May 2025,” he said.
Menon added that three-wheeler sales reached 0.71 lakh units, growing 31.1 per cent, while two-wheeler sales stood at 19.02 lakh units, up 14.8 per cent compared with the same month last year.
According to SIAM, the strong growth was aided by a lower base effect from May 2025, while demand continued to benefit from reduced GST rates and easier financing availability, which contributed to higher retail offtake during the month.
