Indian Auto Industry Set to Accelerate by May 2026 –

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The Indian automobile industry had a strong performance in May 2026, with several manufacturers recording record monthly sales of passenger cars, two-wheelers and commercial vehicles. Electric vehicle sales have been a bright spot, with several manufacturers reporting significant growth, reflecting an accelerating shift to cleaner modes of travel. While the overall demand environment remains healthy, rising input costs and global supply chain pressures remain factors that the industry will watch closely.

commercial vehicle

Tata Motors reported total sales of 32,850 units in May 2026, up 17% from 28,147 units in May 2025. Domestic sales led the way, with sales of 30,784 units, an increase of 19% over the same month last year. Among segments, the SCV cargo and pickup categories performed best, growing 30% to 11,819 units, followed by passenger vehicles, growing 21% to 5,757 units. HCV trucks and ILMCV trucks also grew steadily at 11% and 8% respectively. However, international business fell slightly by 9% to 2,066 units. Domestic and international sales in the MH&ICV segment totaled 14,596 units, up 7% year-on-year, reflecting broad demand momentum across the commercial vehicle portfolio.

Ashok Leyland reported total domestic sales of 14,148 units in May 2026, a slight decline of 3% as compared to 14,534 units in May 2025. While the light commercial vehicle (LCV) segment registered strong growth of 13%, the medium and heavy commercial vehicle (M&HCV) segment overall sales declined by 11%, mainly due to a sharp 35% decline in passenger car sales. However, on a cumulative basis, total domestic sales in the April-May period were 28,390 units, up 5% from the same period last year, reflecting underlying demand elasticity.

Mahindra’s truck and bus business recorded total sales of 3,129 units in May 2026, an increase of 18% from 2,643 units in May 2025. The passenger car segment was the main driver, growing strongly by 32% to 1,976 units, while freight vehicles were essentially stable at 1,153 units. Year-to-date, the business sold 6,140 units during April-May fiscal 2027, up 15% from 5,351 units during the same period in fiscal 2026. Within the business, Mahindra Trucks and Buses Division (MTBD) was the standout with 24% monthly growth, while SML Mahindra contributed 15% year-on-year growth, reflecting broad momentum across both entities.

Sonalika Tractors accelerated its momentum in FY27, with total tractor sales hitting a record high of 17,204 units in May, an overall growth of 21%, beating industry performance. This new milestone for Sonalika underscores the brand’s continued commitment to delivering ‘Jeetne ka Dum’ to farmers and its evolving role in building an agriculturally efficient and prosperous nation, aiming to make India an agricultural superpower. The company also recorded its highest ever monthly production of 17,029 tractors as part of preparations for the upcoming Kharif season in India.

Passenger car

Maruti Suzuki India recorded its highest-ever monthly sales in May 2026, selling a total of 242,688 units, a huge jump from 180,077 units in May 2025. Domestic sales also hit a record high, reaching 193,535 units, up from 138,690 units in the same month last year. The utility vehicle segment was the major contributor, growing strongly to 79,267 units, while passenger cars grew to 97,830 units. Exports increased further, climbing from 31,219 units to 41,914 units. From a cumulative perspective, total sales from April to May of fiscal year 2027 were 482,334 vehicles, an increase of 34% from 359,868 vehicles in the same period of fiscal year 2026, reflecting a good start to the new fiscal year.

Tata Motors’ total passenger vehicle sales in May 2026 were 59,790 units, a strong growth of 42% from 42,040 units in May 2025. Domestic passenger car sales increased significantly from 41,557 units to 59,090 units, and international business increased by 45% to 700 units. The most outstanding performance was in the electric vehicle segment, with sales hitting a new monthly high of 10,517 units, an increase of 85% from 5,685 units in May 2025, further consolidating Tata Motors’ leading position in India’s electric vehicle sector. The company also consolidated its position as the second largest player in the passenger car market based on VAHAN registrations, which grew by more than 50% year-on-year, reflecting strong and broad consumer demand for its product portfolio.

Hyundai Motor India continued to maintain strong momentum in May 2026, with domestic sales reaching 47,837 units, a year-on-year growth of 9.1%. Export volume was 13,300 vehicles, and total monthly sales were 61,137 vehicles, an increase of 4.1% over the same month last year. The company’s performance in the first two months of FY27 further reinforced this positive trend, with cumulative domestic sales rising 13% to 99,739 units from 88,235 units in the April-May period of FY27.

Kia India achieved its highest sales in May since its inception, with wholesale sales reaching 27,586 units in May 2026, a strong growth of 23.6% year-on-year from 22,315 units in May 2025. The performance reflects continued customer demand for the brand’s product portfolio and continued growth momentum in the Indian market. Year-to-date, Kia India has sold 139,197 units in 2026, up 14.6% from 121,514 units in the same period last year, underscoring the brand’s continued growth trajectory, supported by its focus on premium, technology-led mobility solutions.

JSW MG Motor India sold 6,048 vehicles in May 2026, maintaining its sales performance despite facing headwinds such as global supply chain disruptions, rising commodity prices and rising freight costs. This month also marks a major product milestone with the launch of India’s first D+ segment SUV, MAJESTOR, available in 4×2 and 4×4 automatic top trim options priced at Rs 40.99 lakh and Rs 44.99 lakh (ex-showroom) respectively, signaling the company’s intention to strengthen its presence in the premium SUV segment.

Honda Cars India had a strong performance in May 2026 with total sales of 7,853 units, a significant year-on-year growth of over 31% as compared to 5,985 units in May 2025. Domestic sales increased from 3,950 units to 5,111 units, a healthy growth of 29%, while exports jumped from 2,035 units to 2,742 units, a jump of 35%. The broad-based growth in both domestic and export markets reflects strengthening consumer demand and rising international demand for Honda’s India-made vehicles.

Renault India, a wholly-owned subsidiary of Groupe Renault, recorded its ninth consecutive month of wholesale volume growth in May 2026, continuing the strong growth momentum that began in September 2025. Between September 2025 and May 2026, Renault India’s cumulative wholesale volume reached 38,225 vehicles, a strong growth of 46% compared to the same period last year. According to VAAHAN data, Renault was one of only two passenger car manufacturers in India to achieve positive retail sales growth in May 2026. The company also reported a 64% year-on-year increase in wholesale volumes during the month, underscoring strong customer demand and Renault’s growing presence in the Indian market.

Nissan Motor India Pvt. Ltd. (NMIPL) today announced its sales results, with domestic sales in May 2026 growing strongly by 118% year-on-year. The company’s domestic wholesale volume in May 2026 was 2,948 units. Export volume for the month was 5,023 units, and total wholesale volume was 7,971 units. This marks the third consecutive month of year-on-year growth in Nissan Motor India’s domestic business, reinforcing the company’s continued growth momentum in the Indian market.

two wheeler

Honda Motorcycles and Scooters India Pvt. Ltd. (HMSI)’s total sales in May 2026 were 518,000 vehicles, compared with 465,000 vehicles in May 2025, a year-on-year increase of 12%. In May 2026, domestic sales were 459,000 vehicles, an increase of 10% from 417,000 vehicles in the same period last year. The export volume in May 2026 was 0.59 million vehicles, an increase of 24% from the export volume in May 2025 of 0.47 million vehicles. The two-wheeler market demand was stable in May. Backed by its diverse product portfolio and an extensive network of more than 7,000 touchpoints across the country, HMSI continues to strengthen customer engagement and expand its reach across markets.

TVS Motor Company recorded its highest-ever monthly sales in May 2026, with total sales rising 31% year-on-year to 5,66,585 units from 4,31,275 units in May 2025. Two-wheeler sales drove the performance, growing by 31% to 5,43,111 units, of which motorcycle sales increased by 30% to 2,73,802 units and scooter sales increased by 32% to 2,20,740 units. Domestic two-wheeler sales grew at a healthy 24% to 3,84,565 units. The electric vehicle segment performed best, with sales rising 56% to 43,632 units, reflecting the company’s accelerated push into electric vehicles. International business further strengthened, with total exports surging 49% to 1,75,991 units, driven by a 48% increase in two-wheeler exports and a 55% increase in overseas sales of three-wheelers.

Suzuki Motorcycles India Pvt. SMIPL, the two-wheeler subsidiary of Japan’s Suzuki Motor Corporation, has announced its sales results for May 2026. Riding on the strong momentum, SMIPL recorded its highest ever monthly sales with total sales reaching 1,32,244 units in May 2026, a year-on-year growth of 3% as compared to 1,28,897 units sold in May 2025. SMIPL’s domestic shipments were 1,10,028 units in May 2026, up 2% from 107,780 units in May 2025. This marks the company’s highest monthly domestic sales to date. SMIPL’s exports are on an upward trend, with shipments of 22,216 units in May 2026, an increase of 5% from 21,117 units in May 2025.

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