According to FADA, total vehicle retail sales stood at 25,31,067 units in May 2026, down 6.75% from April 2026 but up 9.55% compared with May 2025.
Passenger vehicle sales grew 23.25% year-on-year, while tractor sales rose 11.17%. Two-wheeler retail sales increased 7.54%, commercial vehicle sales advanced 5.29%, and three-wheeler sales gained 3.56%. Retail sales of wheeled construction equipment declined 17.51% on a high base.
On a month-on-month basis, passenger vehicle retail sales fell 6.10%, while two-wheeler sales declined 7.19% and commercial vehicle sales dropped 18.33%. Three-wheeler sales rose 1.29% and tractor sales increased 5.96%. Retail sales of wheeled construction equipment fell 22.93%.
FADA attributed the month-on-month decline in sales to seasonal moderation following April and the delayed onset of the southwest monsoon, which kept May largely a pre-sowing month across many rain-fed regions.
Looking ahead to June 2026, more than half of dealers surveyed by FADA expect growth, while nearly 40% anticipate a flat market. Dealer sentiment is supported by the progress of the southwest monsoon, early Kharif sowing activity, the ongoing marriage season and a stable financing environment following the Reserve Bank of India's decision to maintain the repo rate at 5.25%.
For the June-August 2026 period, dealer confidence improved further, with 59.07% of respondents expecting growth. FADA said advancing monsoon conditions, rural income prospects, agricultural activity and continued demand across vehicle categories are expected to support the industry's outlook over the coming months. Overall, the industry looks set to move from a seasonally soft patch towards a firmer second-quarter footing.
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We would like to caution you against such fraudulent calls and SMSes and urge you to be alert. Follow the golden rule:
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Certain tele-fraudsters / unscrupulous and unregistered portfolio managers call customers or SMS them on the pretext of providing investment tips and lure them to invest through their bogus firms by promising huge profits.
Such deceitful callers ask the customer to share his/her login credentials with passwords to allow trading in their accounts, assuring huge returns.
Often trades done in the customer’s accounts are far from the best interest of the customers. Holdings of customers are often sold and with the funds, trades are then placed in illiquid securities at unrealistic prices.
At times, the holdings of customers are sold at prices detrimental to the customer. The so-called “portfolio manager” assures profits, which naturally does not materialize. Customers are deceived into providing access to their trading accounts, thereby allowing such fraudsters access to funds and securities available to execute trades, injurious to the customer’s interest.
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