May 2026 PV sales cross 4 lakh units; Maruti leads with nearly 41% market share

India’s passenger vehicle (PV) market recorded its strongest-ever May performance, with retail sales rising 23.25 per cent year-on-year to 4,02,591 units, according to data released by the Federation of Automobile Dealers Associations (FADA).

The May figures were compiled from vehicle registration data collected from 1,464 of India’s 1,467 Regional Transport Offices (RTOs) across the country. The month saw strong gains for several automakers, led by Maruti Suzuki, Tata Motors and Mahindra, as overall demand remained healthy across the country.

Maruti leads, Tata follows in growing market

Leading the market was Maruti Suzuki India, which retailed 1,64,925 vehicles in May 2026, up from 1,23,714 units a year earlier. The carmaker also expanded its market share from 37.87 per cent to 40.97 per cent, meaning more than four out of every ten passenger vehicles sold in India during the month came from Maruti Suzuki.

Tata Motors emerged as the second-largest PV retailer with 55,544 units and a market share of 13.80 per cent, up from 12.21 per cent a year ago. Mahindra & Mahindra followed with 51,311 units, while Hyundai Motor India registered 46,223 units to retain fourth place.

Kia gains share, Renault and Nissan grow

Among the other major manufacturers, Toyota Kirloskar Motor sold 26,294 vehicles, while Kia India continued to strengthen its position with 24,644 units and a market share increase from 5.65 per cent to 6.12 per cent.

Strong percentage gains were also recorded by Renault India and Nissan Motor India, whose retail volumes rose significantly compared to May 2025. Meanwhile, VinFast Auto India made its presence felt with 1,238 retail registrations during the month.

Petrol remains largest fuel choice

Petrol and ethanol-powered vehicles continued to account for the largest share of passenger vehicle retail sales in May 2026, contributing 45.76 per cent of total registrations. However, their share remained lower than the 48.15 per cent recorded in May 2025, highlighting the gradual shift towards alternative powertrains.

CNG and LPG vehicles strengthened their position further, accounting for 23.34 per cent of PV retail sales, up from 19.93 per cent a year ago and 22.18 per cent in April 2026. Diesel's share continued to decline, falling to 16.23 per cent from 19.32 per cent in May last year.

Hybrid vehicles accounted for 8.05 per cent of registrations, while electric vehicles increased their share to 6.63 per cent, up from 4.51 per cent in May 2025 and 6.11 per cent in April 2026.

Overall, alternative powertrains, including CNG, hybrid and electric vehicles, represented more than 38 per cent of all passenger vehicle registrations during the month, underlining the growing diversification of India's car market.

Rural markets outpace urban demand

Commenting on the performance, FADA President C S Vigneshwar said passenger vehicles were the standout segment of the month. He highlighted a revival in demand for smaller cars alongside continued SUV popularity, supported by healthy booking pipelines, new model launches and growing acceptance of alternative fuel options.

FADA also noted that rural markets continued to outperform urban areas, with rural PV retail sales growing 30.35 per cent year-on-year compared to 18.80 per cent growth in urban markets.

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