Daijiworld Media Network - New Delhi

New Delhi, Jun 15: India's automobile industry registered its best-ever performance for the month of May, with strong consumer demand across passenger vehicles, two-wheelers and three-wheelers propelling sales to record levels, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Monday.

Domestic passenger vehicle sales witnessed a sharp 27.3 per cent year-on-year increase, reaching an all-time May high of 4,38,854 units, compared to 3,44,656 units sold during the same period last year.

The two-wheeler segment also delivered an impressive performance, with sales rising 14.8 per cent to 19,02,209 units. Three-wheeler sales grew even faster, climbing 31.1 per cent to 70,720 units.

SIAM Director General Rajesh Menon said all three major vehicle categories achieved their highest-ever sales figures for the month of May.

He attributed the strong growth to a combination of factors, including a lower base from May 2025, reduced GST rates and improved access to vehicle financing.

"These factors continue to encourage higher consumer purchases across multiple segments," Menon said.

The encouraging wholesale figures follow a strong retail sales performance reported earlier by the Federation of Automobile Dealers Associations (FADA).

According to FADA, passenger vehicle retail sales crossed the four-lakh mark for the first time in May, rising 23.25 per cent year-on-year to 4,02,591 units.

The dealers' body attributed the surge to strong rural demand, renewed interest in entry-level cars and sustained popularity of sport utility vehicles (SUVs).

The two-wheeler category recorded its best-ever May sales performance, led primarily by a significant rise in scooter demand.

Scooter sales jumped 27.4 per cent to 7,39,667 units during the month.

Motorcycle sales also registered healthy growth, increasing 7.2 per cent to 11,13,973 units, while moped sales surged 30.3 per cent to 48,569 units.

Passenger vehicles continued to benefit from improved affordability and positive consumer sentiment, enabling the segment to achieve its highest-ever May sales volume.

Meanwhile, the three-wheeler segment maintained its strong growth trajectory, with sales rising from 53,942 units in May last year to 70,720 units this year.

Passenger carriers remained the largest contributor to the segment, recording a 30 per cent increase to 57,649 units.

Goods carriers posted an even stronger performance, with sales growing 35.3 per cent to 11,802 units.

Electric three-wheelers also witnessed notable expansion. Sales of electric rickshaws rose 38.9 per cent to 1,000 units, while electric cart sales surged 81.8 per cent to 269 units, although from a relatively smaller base.

Industry experts believe favourable financing conditions, stronger rural purchasing power and growing consumer confidence could continue to support momentum in the coming months, making the automobile sector one of the key drivers of India's consumption-led economic growth.