Newly launched models from Maruti Suzuki, Honda and Ford led the growth, with petrol cars more in demand than diesel-powered utility vehicles (UV). In fact, UV specialist Mahindra & Mahindra was one of the few to see declining sales in the month.
Two-wheelers sales, which have picked up over the past few months on the back of strong rural demand after good monsoons, continued the strong show in May. Hero, Bajaj, Honda and TVS, all saw growth in demand, with most companies now operating their factories at optimum levels to cater to the high demand.
In an indication of improving economic activity that could help boost commercial vehicle demand in the near future, freight rates on key trunk routes in May also went up 4-5%, independent agency IFTRT said.