Auto Retail Sales Hit Record High in May, Strong Demand Drives Industry To Best-Ever Monthly Performance
· Free Press Journal
New Delhi: India's automobile industry recorded its highest-ever retail sales for the month of May, with total vehicle sales crossing 25.31 lakh units, according to data released by the Federation of Automobile Dealers Associations (FADA) on Monday.
Retail sales stood at 25,31,067 units during the month, registering a 9.55 percent growth compared to May last year.
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Passenger Vehicles Lead Growth
Passenger vehicles emerged as the strongest-performing segment in May.
Retail sales of passenger vehicles reached 4,02,591 units, marking a sharp 23.25 percent rise year-on-year.
Passenger Vehicle Demand Remains Strong, Maruti Suzuki & Kia India Post Record May SalesRural markets performed better than urban areas. Rural passenger vehicle sales grew 30.35 percent, while urban sales increased 18.80 percent.
Dealers said demand for small cars improved, while sport utility vehicles (SUVs) continued to remain popular. New model launches and healthy booking levels also supported sales.
Two-Wheeler Sales Remain Strong
Two-wheeler retail sales stood at 18,44,947 units in May, up 7.54 percent from a year ago.
Urban markets recorded 11.75 percent growth, while rural markets grew 4.74 percent.
Dealers also reported increased customer interest in fuel-efficient vehicles after the fuel-price revision in May.
The share of electric two-wheelers rose to 9.25 percent, compared with 6.11 percent in the same month last year.
EV Retail Sales Jump 16% In 2025 On 77% Surge In Electric Car Demand: FADAAlternative Fuel Vehicles Gain Popularity
FADA President CS Vigneshwar said buyers are increasingly choosing vehicles powered by alternative fuels.
In the passenger vehicle segment, the share of CNG vehicles increased to 23.34 percent, while electric vehicles accounted for 6.63 percent.
Overall, vehicles running on alternative fuels made up more than 38 percent of passenger vehicle sales during May.
Commercial Vehicles and Outlook
Commercial vehicle retail sales rose 5.29 percent year-on-year to 83,823 units.
Rural markets expanded by more than 8.10 percent, outperforming urban markets, which grew over 2.62 percent.
FADA said the strong performance came despite an above-normal heatwave, fuel-price pressures and the evolving West Asia situation.
Looking ahead, dealer sentiment remains positive. More than 50 percent of dealers expect growth in June, while confidence improves further for the June-July-August period, with nearly 59 percent expecting sales to rise.