Auto Industry Heads For Strongest May Since 2018 As Registrations Near 20 Lakh Units

India’s automobile retail market stayed resilient in May 2026 even as inflation concerns, geopolitical tensions and global uncertainty continued to weigh on sentiment.

VAHAN registration data for the period between 1 May and 25 May showed total vehicle registrations at nearly 19.75 lakh units, compared with around 17.7 lakh units in the same period last year. That marks a 11.6% rise year on year.

If the trend holds, May could turn out to be the strongest month for the industry since 2018.

Most major automakers have already crossed their May 2025 registration levels even before the month concludes.

Which Vehicle Segments Are Driving Auto Sales Growth In May?

Two-wheelers continued to remain the biggest contributor to overall industry volumes. Registrations in the segment stood at 14.53 lakh units during the first 25 days of May, up 9% from the year-ago period.

Within the category, TVS Motor and Bajaj Auto are estimated to have gained market share, helped by stronger product demand and steady rural consumption trends.

Hero MotoCorp, however, is expected to lose more than 100 basis points of market share during the month.

Royal Enfield registrations also remained under pressure due to production disruptions that affected dispatches.

Passenger vehicles (PV) emerged as the strongest-performing segment in May. PV registrations climbed 23% year-on-year to 3.62 lakh units from 2.95 lakh units last year.

Maruti Suzuki and Hyundai are seen outperforming the broader market amid healthy demand in utility vehicle and compact car categories.

Mahindra & Mahindra also continued to report strong traction in SUVs, supported by pending order execution and sustained customer demand.

Tata Motors passenger vehicle business is also expected to post healthy growth for the month.

How Are Commercial Vehicles And EV Segments Performing?

Commercial vehicle demand stayed healthy in May even as concerns around economic growth continued in some pockets of the market.

Registrations in the segment rose 14% year-on-year to 62,598 units. Medium and heavy commercial vehicles grew 15% to 23,240 units during the period.

Tata Motors and Ashok Leyland have already exceeded their May 2025 registration figures even before the month closes, indicating that freight activity and replacement buying have remained fairly steady.

Three-wheelers also continued to see strong traction.

Registrations in the category increased 19% from last year to 95,400 units. The demand for three-wheelers was sustained by urban transportation. Electric models also saw steady adoption during the month.

The electric vehicle (EV) two-wheeler space remained busy. Ather Energy continued to post healthy registrations. Ola Electric, meanwhile, is likely to cross the 10,000-unit mark for the third month in a row after a volatile start to FY26.

What Do The May Registration Trends Suggest For The Auto Industry?

Auto demand has largely held firm so far in May. The strength is visible across multiple categories, especially passenger vehicles.

SUVs and utility vehicles continued to sell well during the month. Better product availability also helped several carmakers improve registrations compared to last year.

Commercial vehicle numbers did not show any major slowdown either. That indicates freight movement and replacement buying are still supporting the segment despite concerns around the economy.

While some regions continued to report healthy rural demand, the trend was not uniform across the industry.

Mahindra & Mahindra’s tractor registrations have already moved ahead of last year’s May levels, indicating healthy rural demand in some regions. Escorts Kubota continued to remain below last year’s levels by nearly 10%, reflecting weaker demand in certain markets.

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Overall, the May data points towards one of the strongest monthly performances for the automobile industry in several years, with most segments already reporting higher registrations than the entire corresponding month last year.

Source:

CNBC TV18