Passenger vehicle industry grows 26.2% in May to 4.44 lakh units

The strong performance indicates continued momentum in the sector at the start of FY27, despite fuel price hikes and global uncertainty, supported by improving supply conditions, new model launches and a clear shift in consumer preference towards lower running-cost vehicles.

Market leader Maruti Suzuki India led the growth with a 40% increase to 1,90,337 units, while Tata Motors reported a sharp 42.2% rise to 59,090 units, further strengthening its position as the country’s second-largest PV manufacturer by wholesale volumes. Mahindra & Mahindra posted a 10.7% increase to 58,021 units, and Hyundai Motor India recorded a 9.1% growth to 47,837 units. Kia India grew 23.6% to 27,586 units, while Toyota Kirloskar Motor rose 7.3% to 33,128 units.

Executives attributed the sustained growth to continued SUV demand, gradual recovery in entry-level cars, improving supply availability, new launches and a clear shift in consumer preference towards CNG vehicles following recent fuel price increases.

Alternative Fuel Pivot

“All segments — including mini, compact, mid-size, utility vehicles and vans — have registered YoY growth. Rural sales grew 55% YoY, while CNG sales touched their highest-ever level. We are seeing that CNG bookings have increased to almost 1.4x levels, indicating a significant rise in demand and consumer preference for CNG vehicles,” said Partho Banerjee, Senior Executive Officer – Marketing and Sales, Maruti Suzuki India.

He added that strong rural demand and expansion of the company’s network continue to support overall sales momentum.

At Tata Motors, the strong performance was driven by continued traction in its SUV portfolio and steady demand across models, helping the company maintain robust volume growth in May.

Mahindra & Mahindra maintained its growth momentum during the month, supported by sustained demand for its SUV portfolio, even as supply-side constraints persisted.

“The sustained demand across our portfolio continues, constrained by supply chain challenges due to manpower shortages at select suppliers,” said Nalinikanth Gollagunta, CEO, Automotive Division, M&M Ltd. 

Hyundai Motor India, MD & CEO Tarun Garg said the company continued its strong momentum into May, reflecting resilient demand conditions despite rising fuel costs.

“Hyundai Motor India has continued its strong momentum of the year into May as well,” he said, adding that domestic volumes rose 13% in April–May FY27 to 99,739 units, compared with 88,235 units in the same period last year.

Kia India company said its performance was driven by strong demand for its SUV portfolio, particularly the Seltos and Sonet. “The continued strong demand for the new Seltos along with Sonet, coupled with the encouraging response to the Carens Clavis, Clavis EV and the MY26 Syros, has helped us sustain our growth momentum,” said Atul Sood, Senior Vice-President, Sales & Marketing, Kia India.

He added that evolving consumer preferences and sustained product refreshes continue to support growth across segments.

Commercial and Two-Wheeler Segments

The commercial vehicle (CV) segment also reported healthy gains in May.

Tata Motors CV domestic sales rose 19% to 30,784 units, compared with 25,872 units in the same month last year, supported by demand recovery across segments.

VE Commercial Vehicles (VECV) reported a 9.1% growth to 7,375 units, while Mahindra & Mahindra’s trucks and buses business posted an 18% increase to 3,129 units, reflecting steady demand in the CV space.

The two-wheeler segment continued to show steady growth in May, supported by strong rural demand and a broad product portfolio.

Honda Motorcycle & Scooter India (HMSI) reported a 10% YoY increase to 4,59,611 units, while TVS Motor Company posted a strong 24% growth to 3,84,565 units, driven by sustained demand across scooters and motorcycles.

Bajaj Auto recorded a 9% increase in domestic wholesales to 2,09,528 units, reflecting stable demand conditions in the segment.