The country’s automobile sector has set a new sales record in the month of May. According to the Federation of Automobile Dealers Associations (FADA), the country’s total auto retail sales increased by 9.55% to 25,31,067 units in May 2026. In May last year, this figure was 23,10,451 units. The biggest thing among this record sales is that for the first time the share of Electric Vehicles (EV) in the total vehicles sold in the country has crossed 11%. Due to the recent increase in the prices of fuel (petrol-diesel) in the country due to the Middle East crisis, the inclination of customers has increased towards green and fuel-efficient vehicles. Sales of passenger vehicles increased by 23.25% in May. According to FADA data, retail sales of passenger vehicles (cars) in the month of May stood at a record 4,02,591 units with a huge increase of 23.25%. Last year in May 2025, this figure was 3,26,656 units. Apart from this, sales of two-wheelers also increased by 7.54% to 18,44,947 units. Two-wheeler sales increased by 7%. Share of EV among two-wheelers reached close to 9%. The effect of change in fuel prices in May was clearly visible on customer enquiries. Dealers say people are now asking more about vehicles with higher mileage and alternative fuels (like EVs and hybrids). This is the reason why the share of Electric Vehicles (EV) in the two-wheeler market has increased from 6.11% a year ago to 9.25% now. Performance of commercial and three-wheeler segments Three-wheeler sales increased by 3.56% last month to 1,11,526 units as against 1,07,688 units in May last year. At the same time, the segment of commercial vehicles (CV) i.e. heavy vehicles also saw a growth of 5.29% and reached a record of 83,823 units. However, construction equipment (wheeled construction equipment) sales declined by 17.51% due to high base last year.
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