India's auto market set for best May in 8 years
What's the story
The Indian automobile retail market is witnessing a strong performance in May 2026, with vehicle registrations remaining steady across all segments. The VAHAN registration data from May 1-25 shows that the industry is on track for its best May since 2018. Most automakers have already surpassed their entire registration levels for May 2025, indicating a healthy demand despite inflation and global uncertainties.
Registration increase
Nearly 19.75L vehicles registered in 25 days
In the first 25 days of this month, total vehicle registrations reached nearly 19.75 lakh units, a massive 11.6% jump from last year's 17.7 lakh units. This growth was seen across all key segments with healthy double-digit or near double-digit growth rates. Two-wheelers, which contribute the most to industry volumes, recorded 14.53 lakh units in this period, 9% higher than last year.
Segment dynamics
Shifts in 2-wheeler market share
Despite the overall growth, market share trends indicate a shift within the two-wheeler segment. TVS and Bajaj Auto are gaining market share due to a better product mix and sustained rural demand. However, Hero MotoCorp is likely to lose over 100 basis points of market share this month. The electric two-wheeler segment continues to shine with Ather Energy's strong momentum sustaining for another month, and Ola Electric set to cross the 10,000-unit monthly registration mark for the third consecutive month.
Vehicle performance
Strong growth in passenger and commercial vehicle registrations
Passenger vehicle (PV) registrations have jumped an impressive 23% to 3.62 lakh units from last year's 2.95 lakh units. All major PV manufacturers have already surpassed their respective May 2025 registration levels. Commercial vehicle registrations also remained strong, growing by 14% to 62,598 units from last year with medium and heavy commercial vehicles (M&HCVs) witnessing a growth of 15% to 23,240 units.