Demand for passenger vehicles (PVs) and two-wheelers offset the impact of rising fuel prices as most original equipment manufacturers (OEMs) reported a surge in May 2026 sales.
Maruti Suzuki India Ltd (MSIL), the country’s largest carmaker, on Monday reported its highest-ever monthly sales in May 2026 with domestic dispatches hitting 1,90,337 units compared to 1,35,692 units in the year-ago month.
Likewise, Tata Motors Passenger Vehicles Ltd (TMPV) reported 42% increase in domestic PV sales to 59,090 units, firming its spot as India’s second largest carmaker. In the two-wheeler segment, TVS Motor Company, Honda Motorcycle & Scooter India (HMSI) and Royal Enfield reported double-digit growth in May sales.
MSIL senior executive officer, marketing & sales Partho Banerjee said that despite fuel price hikes affecting demand, the company has been able to put up a strong performance with holistic growth. MSIL’s total sales, including sports, stood at 242,688 units, which is its highest-ever monthly sales volume.
It is to be noted that petrol and diesel prices were increased by around Rs 7.5 per litre in a span of two weeks by the government-owned oil marketing companies (OMC) last month. Following this, industry experts and executives cited that the price hikes will weigh on demand for entry-level cars and two-wheelers.
Outlining the correlation between the fuel price hike and demand for cars, as it increases the total cost of ownership, Banerjee said, "If the fuel prices keep going up, it will surely have an impact on the auto industry."
SUV major Mahindra & Mahindra (M&M) sold 58,021 units last month in the domestic market, a growth of 11% year-on-year while Hyundai Motor India Limited (HMIL) reported domestic sales of 47,837 units in May 2026, up 9.1%. Kia India, reported its highest-ever May sales since inception, with wholesale volumes of 27,586 units, up nearly 24%.
In the two-wheeler segment, TVS’ domestic two-wheeler registered growth of 24% with sales increasing from 309,287 units in May 2025 to 384,565 units in May 2026. Honda (HMSI) reported domestic sales of 4.59 Lakh units, registering a 10% growth, while Royal Enfield’s domestic sales grew by 24% to 95,115 units in May 2026.
