India Passenger Vehicle Sales Surge 25.3% in May

Passenger vehicle sales in India increased 18.2% year-on-year in June 2026, slowing from a 25.3% surge in the previous month to 326,068 units, according to data from the Society of Indian Automobile Manufacturers (SIAM). The strong performance was attributed to supportive domestic demand, aided by lower Goods and Services Tax rates, softer financing costs, and the introduction of new models, though growth eased compared to May. However, the industry continues to closely monitor geopolitical developments and the progress of the monsoon, given their implications for agricultural output and rural demand. In May, SIAM stated that the positive momentum seen in the second half of FY 2025–26 continued into the first month of FY 2026–27.

Passenger vehicle sales in India grew 25.3% year-on-year in May 2026, accelerating sharply from a 2.5% rise in the previous month to 379,764 units. It was the highest-ever sales figure for May, according to data from the Society of Indian Automobile Manufacturers (SIAM). The surge in car sales was boosted by a low base effect from May last year and stronger demand driven by reduced Goods and Services Tax rates as well as easier financing. Last month, SIAM stated that the positive momentum seen in the second half of FY 2025–26 continued into the first month of FY 2026–27.

Passenger vehicle sales in India increased 2.5% year-on-year in April 2026, slowing sharply from 14.1% growth in the previous month to 378,312 units. It was the highest-ever sales figure for April, although growth eased compared with March, according to data from the Society of Indian Automobile Manufacturers (SIAM). SIAM stated that the positive momentum seen in the second half of FY 2025–26 continued into the first month of FY 2026–27. “Though there are concerns over high commodity prices stemming from disruptions in West Asia, the industry has been witnessing healthy demand,” said Rajesh Menon.