India's automobile industry maintained its strong momentum in May, with leading passenger vehicle (PV) manufacturers reporting healthy year-on-year (y-o-y) growth despite rising fuel prices and concerns over elevated crude oil costs. Market leaders Maruti Suzuki India and Kia India recorded their best-ever May sales, while Tata Motors, Mahindra & Mahindra (M&M), Hyundai Motor India and Toyota Kirloskar Motor also posted gains.
Brokerage reports from Nomura and HSBC suggest that rising petrol and diesel prices are accelerating consumer interest in electric vehicles (EVs), contributing to a broader shift towards alternative fuel technologies.
Combined domestic PV sales of the country's six largest car-makers rose 27.1% to 413,445 units in May from 325,406 units in the corresponding month last year, reflecting resilient consumer demand and sustained interest in sport utility vehicles (SUVs), EVs and hybrids.
Maruti Suzuki Posts Record Domestic Sales
Maruti Suzuki India reported its highest-ever domestic sales for May, selling 193,535 units compared with 138,690 units a year earlier. PV sales rose to 190,337 units from 135,962 units in May 2025, supported by strong growth across segments.
Sales of entry-level models Alto and S-Presso more than doubled to 16,275 units from 6,776 units a year ago. The compact car portfolio, including Baleno, Swift, WagonR, Dzire and Celerio, also delivered robust growth, with sales increasing to 81,555 units from 61,960 units.
Partho Banerjee, senior executive officer for marketing and sales at Maruti Suzuki, said higher fuel prices typically affect demand for smaller cars by increasing ownership costs. Despite this, the company recorded broad-based growth, with passenger car sales rising 42%.
The changing consumer response to fuel costs was also evident in bookings. According to the company, reservations for the all-electric e-VITARA have crossed 4,000 units following the rise in fuel prices, while bookings for CNG-powered vehicles have increased by around 40%.
Maruti Suzuki's total wholesales, including exports, stood at 242,688 units during the month, marking a 35% increase over the previous year.
Tata Motors Sees Sharp EV Growth
Tata Motors reported domestic passenger vehicle sales of 59,090 units in May, up 42% from 41,557 units in the same period last year.
A standout feature of the performance was the company's EV business. Combined domestic and export EV sales surged 85% y-o-y to 10,517 units, underscoring growing consumer acceptance of battery-powered vehicles.
Passenger EV penetration increased to around 6.4%-6.6% of total vehicle sales in May, compared with approximately 4% during FY25-26. Tata Motors remains one of the key beneficiaries of this transition, particularly in the sub-Rs15 lakh segment, where demand remains strong.
M&M Continues SUV-led Growth
M&M continued to benefit from strong demand for its SUV portfolio. The company sold 58,021 utility vehicles in the domestic market in May, an increase of 11% over the previous year. Total utility vehicle sales, including exports, stood at 59,573 units.
Overall automobile sales, including commercial vehicles (CVs) and exports, rose 20% to 99,636 units.
Domestic CV sales increased 19% to 24,079 units, while exports climbed 37% to around 5,000 units.
Nalinikanth Gollagunta, chief executive officer of M&M's automotive division, said customer demand remained healthy across the portfolio, although manpower shortages at certain supplier facilities continued to pose supply-chain challenges.
Hyundai, Kia and Toyota Report Steady Gains
Hyundai Motor India reported domestic sales of 47,837 units in May, up 9.1% y-o-y. Including exports of 13,300 units, total sales reached 61,137 units, an increase of 4.1%.
Kia India delivered one of the strongest performances among mass-market manufacturers, with sales rising 23.6% to 27,586 units from 22,315 units a year earlier.
The company said this was its highest-ever May sales performance since entering the Indian market in 2019. Kia attributed the growth to strong demand for models such as the Seltos, Sonet, Carens Clavis and Syros, highlighting consumers' continued preference for feature-rich SUVs and premium vehicles.
Toyota Kirloskar Motor reported domestic sales of 30,574 units in May, compared with 29,280 units a year earlier, representing growth of around 4%.
The company also crossed a significant milestone, achieving cumulative sales of more than 300,000 strong-hybrid vehicles in India.
The achievement reflects growing consumer interest in hybrid technology at a time when fuel costs remain elevated. Models such as the Innova Hycross Hybrid and Urban Cruiser Hyryder Hybrid have benefited from increasing demand for fuel-efficient alternatives.
Bajaj Auto Records Strong Export-led Growth
In the two-wheeler (2W) and commercial vehicle (CV) segment, Bajaj Auto reported total sales of 461,257 units in May, up 20% from 384,621 units in the corresponding month last year.
Domestic sales increased 10% to 248,031 units, while exports surged 34% to 213,226 units, providing a significant boost to overall volumes.
Rising Fuel Prices Drive EV Adoption
Industry observers say rising fuel prices are increasingly influencing vehicle purchase decisions.
Petrol and diesel prices have risen by around ₹8/litre since April amid sustained strength in global crude oil prices. The Indian crude basket has remained above US$100/barrel for several months due to geopolitical tensions affecting global energy supplies.
According to Nomura, electric 2Ws accounted for around 8.9% of total two-wheeler sales in May, while HSBC estimated penetration at 9.3%. Both brokerages said EV adoption appears to be approaching an inflection point, supported by favourable policy measures, improving charging infrastructure and growing consumer acceptance.
The May sales data suggest that India's automobile market remains resilient despite concerns over fuel costs, global trade uncertainty and supply-chain constraints.
While auto-makers remain watchful of crude oil prices and monsoon developments, the latest figures indicate that demand for personal mobility continues to remain robust across vehicle segments.
