The passenger vehicle (PV) market is expected to close May 2026 at 4,08,000 units, reflecting a marginal decline from April especially due to seasonal moderation and fewer effective selling days, according to JATO Dynamics’ mid-month forecast.
Based on registration data between May 1 and 14, the report said the market continues to exhibit resilience, supported by structural demand drivers and sustained interest in new products, while SUVs remained the dominant contributor to overall PV volumes.
Mid-month registrations of around 1,53,000 PV units during the first fortnight indicate that demand remains healthy despite a slight moderation compared to April, reflecting typical seasonal trends rather than any structural weakness in the market.
According to the report, May 2026 is currently tracking 27–29 effective selling days, slightly lower than April, contributing to softer sequential comparisons. January had benefited from an extended selling window, while February saw a shorter period. March volumes had remained strong due to the fiscal year-end push.
SUV volumes are projected at 2,48,000 units in May, down 1.5 per cent month-on-month, underscoring the segment’s continued structural strength and leadership within the PV mix.
Post-Fiscal Normalisation
Battery electric vehicle (BEV) sales are forecast at 24,655 units in May, declining marginally by 1.1 per cent sequentially after a stable April. According to JATO, the limited correction points to improving demand consistency, with premium SUVs and urban markets continuing to support EV adoption.
Hybrid electric vehicle (HEV) sales are estimated at 11,034 units, down 10.3 per cent month-on-month as demand normalises after earlier strength, although hybrids continue to serve as a bridge technology due to fuel-efficiency advantages. Petrol vehicle sales are expected at 2,18,000 units, down 4.8 per cent sequentially.
Changes in Domestic Demand
The report noted that PV demand remains urban-led, with urban markets contributing 57.8 per cent, or around 2,43,000 units, followed by metro markets at 23.9 per cent and rural markets at 16.5 per cent. Urban centres continue to drive SUV and EV demand, while rural demand has remained steady without significant acceleration.
Ravi Bhatia, President of JATO Dynamics India, said, “May 2026 reflects continued market stability, with modest sequential corrections driven by seasonality and selling day dynamics rather than demand weakness. SUVs remain the structural growth engine of the PV market. EV demand shows improving stability, hybrids are normalising, and petrol continues to dominate volume segments.”