India Passenger Vehicle Sales Surge 25.3% in May

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.

Passenger vehicle sales in India climbed 14.1% year-on-year in March 2026, accelerating from a 10.6% increase in the previous month to 376,268 units and marking the highest sales ever in the financial year 2025–26. Fresh data from the Society of Indian Automobile Manufacturers (SIAM) showed the increase was supported by the extended impact of last year’s tax policy changes and multiple repo rate cuts during the year. Looking ahead, domestic demand and macroeconomic fundamentals remain robust as the country steps into FY 2026–27, which should support steady growth for the industry. However, uncertainties arising from the West Asia conflict need to be closely monitored, as they may impact production, commodity prices, fuel prices, freight rates, and the overall economy, SIAM stated.