India's auto retail market achieved record sales in May 2026, with total retail sales reaching 2,531,067 units, a 9.55% increase from 2,310,451 units in May 2025. This growth was broad-based, as all major segments saw increases. Passenger vehicles led with a 23.25% rise to 402,591 units, while two-wheelers reached an all-time high of 1,844,947 units, marking a 7.54% year-on-year increase. Three-wheelers and commercial vehicles also saw gains of 3.56% and 5.29%, respectively. Factors such as marriage-season buying and robust rural demand fueled this momentum, despite challenges like extreme heat and supply gaps. The share of electric two-wheelers increased significantly to 9.25%. Looking ahead, the Federation of Automobile Dealers Associations (FADA) expects demand to remain steady in June, supported by favorable conditions such as the ongoing monsoon and stable financing options, with 50.52% of dealers optimistic about growth.