India's auto sector posts record May sales above 2.5 million
India's auto sector broke records in May, registering more than 2.5 million vehicles, a 9.55% jump from last year.
Rural demand was a big driver, with passenger vehicle sales up 23%, thanks to new launches and the ongoing craze for SUVs and small cars.
Even tractors, bikes, and commercial vehicles saw solid growth, showing how resilient the market is despite heatwaves and rising fuel prices.
EVs top 11% in India
Electric vehicles made serious progress too: EVs now make up more than 11% of all sales for the first time. Passenger EVs jumped to nearly 7%, while two-wheeler EVs hit over 9%.
Still, inventory levels are creeping up, so the Federation of Automobile Dealers Associations, or FADA, is urging manufacturers to keep production in check.
Looking ahead, FADA says monsoon progress and better rural incomes could keep demand high, but warns that weather and global issues might slow things down.