PV sales stay resilient in May as industry passes headwinds test

Chennai: The Indian passenger vehicle (PV) industry delivered a resilient performance in May 2026, with four of the six leading automakers—which together account for nearly 94% of India’s PV volumes—posting double-digit year-on-year growth despite recent vehicle price increases driven by rising raw material costs linked to the West Asia crisis, and a fuel price hike implemented during the second half of the month.

The wholesale numbers of major manufacturers in May suggest that underlying consumer demand remains healthy and that the PV industry has, for now, largely weathered these challenges.

Among the six leading players, Maruti Suzuki and Tata Motors reported robust year-on-year growth of 40% and 42%, respectively, while Mahindra and Kia posted increases of 11% and 24%.

Partho Banerjee, senior executive officer, marketing & sales at Maruti Suzuki, said the company continued its strong momentum in May, setting a new all-time monthly sales record after achieving a previous high in April. “We have continued to improve month after month. SUVs grew by 57% in May, while we achieved an all-time high in CNG vehicle sales, with close to 78,000 units,” he added.

On a sequential basis, however, the PV market showed a more subdued trend, although growth remained positive. Barring one of the six major players, all manufacturers managed to improve volumes over April, indicating that demand momentum continued even as higher fuel prices began to filter through the market.

However, industry representatives cautioned that the recent fuel price increase could affect vehicle purchases in the coming months, particularly in price-sensitive segments.

“We will have to wait and see the full impact. However, given the headwinds we have discussed, some impact on demand across segments is inevitable. The effect is likely to be more pronounced in entry-level vehicles, while higher-priced vehicles should remain relatively resilient,” Banerjee added.

Overall, May sales suggest the Indian PV market has yet to see any meaningful demand impact from geopolitical uncertainties or higher fuel prices. While growth is moderating, SUVs continue to drive volumes, and rising fuel costs appear to be accelerating the shift towards alternative-fuel vehicles such as CNG and hybrids. In May, Toyota said cumulative sales of its strong hybrid electric vehicles crossed the 3-lakh mark.