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Indian Auto Sector Witnesses Robust Retail Sales Growth in May

TL;DR

India's auto retail sales saw a 5.5% year-on-year increase in May 2026, with passenger vehicles and electric vehicles leading the growth.

India's domestic automobile retail market continued its upward trajectory in May 2026, recording a 5.5% year-on-year (YoY) increase in vehicle registrations, reaching a total of 2.44 million units. This growth indicates sustained consumer demand, particularly in higher-value vehicle categories.

Passenger vehicle registrations emerged as a strong performer, rising by 18.9% YoY to 382,681 units. The two-wheeler segment, which constitutes a significant portion of the market, also saw a growth of 4.8% YoY, with 1.80 million units registered. Electric vehicle (EV) registrations notably outpaced the overall market, soaring by 41.2% YoY to 263,989 units, underscoring the increasing role of EVs in the country's automotive growth.

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