You would have thought costlier fuel in May 2026 might have given car and two-wheeler buyers pause. But they didn’t. They were the ones behind the industry’s best-ever month, with every segment from PVs to three-wheelers racking up record numbers, per the data put out by SIAM on June 15.
And this was no small feat with petrol and diesel up at least Rs 7.5 a litre and CNG some Rs 6 a kg in May. What you see is the kind of momentum that only comes from being able to afford it, thanks to some tax and financing relief.
Why showrooms were so full
SIAM has it down to a mix of things: better terms for a loan and the demand that has built up since the GST was trimmed back in September 2025. Then there’s the fact that last May was a softer base to build on, which made the year-over-year gains look even steeper.
Rajesh Menon, the director general of SIAM, was blunt about it: “We saw the highest ever May sales for 2026 across the board – passenger, three- and two-wheelers – with double-digit growth in each.” He said the effect of the lower GST and easier credit was “showing up in higher off-take this time around.”
If you are looking for what moved the needle, here is what it was:
– The GST cut made things more doable
– You can get a loan without as much trouble
– A quieter May last year put the growth in perspective
– Fuel did go up, but it wasn’t a deterrent
Passenger vehicles top the charts in May
On the wholesale side, we are talking 4,38,854 units for passenger vehicles in May 2026. That is a 27.3% jump from the 3,44,656 we had a year ago. Put another way, 4.39 lakh is the new high water mark for a May.
For the end user, it is a sign of strong retail interest. With the tax break from last September and more reasonable EMI options, the running costs haven’t been enough to keep people from making a purchase.
Two-wheelers: where scooters are in the lead
The two-wheeler space had its finest May yet, with 19,02,209 units sold at home, a 14.8% increase. Scooters in particular have been hard to ignore.
They were up 27.4% to 7,39,667, a lot of them from city and suburban riders. Motorcycles were up 7.2% to 11,13,973 and mopeds 30.3% to 48,569, showing that value-driven demand in the hinterlands is still very much with us.
It seems like people are going for what makes sense. And with the path to financing less of an obstacle, whether you are a first-timer or in the market for a replacement, the upfront price is not as much of a wall as it used to be.
Three-wheelers on a roll
Another solid month for three-wheelers. We’re seeing 70,720 in domestic sales, up 31.1% from 53,942. The passenger side of the business was the driver, with 57,649 units, a 30% rise.
Goods carriers were up 35.3% to 11,802, which is a testament to the need for last-mile work. You also have the e-rickshaws and e-carts, which are moving in a big way – up 38.9% and 81.8% respectively, though you have to remember the base is small.
A few notes on the numbers
Production has been in step with what the market is asking for. All told, factories turned out 29,27,711 units of everything from quadricycles to two-wheelers in May.
One thing to bear in mind from SIAM: they don’t have the data for BMW, Mercedes, JLR or Volvo. Also, if you are comparing brands, know that Tata Motors’ domestic figures are in here and nowhere else.
Bottom line for the consumer: the deals have not dried up after the tax changes of last year. As long as you can get a loan and the stock is there, you will find good offers, fuel prices or not.
