New Delhi — India’s auto industry recorded its best-ever May retail sales, with total vehicle registrations rising 9.55 percent year over year to 25,31,067 units, according to data released Monday by the Federation of Automobile Dealers Associations.
Passenger vehicles led the growth, rising 23.25 percent during the month. Two-wheeler retail sales increased 7.54 percent, while commercial vehicles grew 5.29 percent and three-wheelers rose 3.56 percent.
FADA said the strong May performance came despite above-normal heatwave conditions, fuel-price pressure and uncertainty linked to the evolving West Asia situation.
“However, the sequential softness of 6.75 per cent reflects the customary post-April seasonal moderation and a delayed south-west monsoon, keeping May largely a pre-sowing month across much of rain-fed Bharat. That growth held through this confluence of pressures underlines the resilience of the underlying demand,” FADA President C.S. Vigneshwar said.
Two-wheeler retail sales stood at 18,44,947 units in May, up 7.54 percent from a year earlier. Urban markets grew 11.75 percent, while rural markets increased 4.74 percent.
FADA said dealers reported a visible rise in inquiries for fuel-efficient and alternative-powertrain options after the May fuel-price revision. The share of electric vehicles in the two-wheeler segment rose to 9.25 percent from 6.11 percent a year earlier.
Passenger vehicle retail sales stood at 4,02,591 units, up 23.25 percent year over year. Rural passenger vehicle sales grew 30.35 percent, outpacing urban growth of 18.80 percent.
Dealers pointed to a revival in small cars, continued demand for SUVs, healthy booking pipelines and new product launches. The alternative-powertrain mix also improved, with CNG share rising to 23.34 percent and EV share increasing to 6.63 percent.
Vigneshwar said the overall alternative fuel share rose to more than 38 percent in May.
Commercial vehicle retail sales came in at 83,823 units, a 5.29 percent increase from a year earlier. Rural commercial vehicle sales grew more than 8.10 percent, compared with more than 2.62 percent growth in urban markets, indicating that goods-movement demand is expanding beyond major cities.
Looking ahead to June, dealer sentiment remained measured. FADA said 50.52 percent of dealers expect growth, 39.90 percent expect the market to remain flat and 9.59 percent expect a decline.
For the June-July-August period, confidence improved, with 59.07 percent of dealers expecting growth. (Source: IANS)
