Strong Growth Recorded in Vehicle Retail Market

Vehicle retail sales in India reached 25,31,067 units in May, according to FADA. This marks a 9.55% increase compared to 23,10,451 units sold in the same month last year. Electric vehicle sales also crossed the 11% growth mark for the first time, driven by rising fuel prices and geopolitical tensions boosting demand for high-mileage vehicles.

Commercial vehicles, passenger vehicles, and EVs all posted strong performance in May. Two-wheeler EV growth rose to 9.25%. About 50.52% of dealers expect further growth in the coming months, while others foresee stability or slight decline due to monsoon movement, rural cash flow, and cost pressures.