New Delhi, 09 June 2026 – India’s passenger vehicle (PV) market recorded strong growth in May 2026, with registrations rising 21.6% year-on-year (YoY) to 3.96 lakh units, compared to 3.26 lakh units in May 2025. This reflects sustained consumer demand, strong SUV adoption, and overall recovery in the automotive sector.
Ravi Bhatia, President at JATO Dynamics India, said: “India’s passenger vehicle market delivered a standout May with 21.6% YoY growth to 3.96 lakh units – one of the strongest monthly performances we’ve tracked in recent years. This is not a one-off but reflects deeper structural shifts in consumer buying behaviour.”
However, the market declined by 6.6% month-on-month with registrations easing from 4.24 lakh units in April 2026 to 3.96 lakh units in May 2026, indicating a typical seasonal correction after a strong April.
Despite the decline, the market remained driven by SUVs and high-volume compact cars continuing to dominate with a 57.2% share of the market, highlighting a strong consumer preference for utility vehicles.
Ravi continued: “The SUV story continues to dominate, with the segment now accounting for over half of all registrations — these vehicles are no longer a preference, but the default choice for many buyers."
Looking at fuel types, petrol vehicles continue to lead at 54% of all registrations, followed by compressed natural gas (CNG) vehicles that held a significant 23% share, reflecting their appeal to cost-conscious buyers. Electric vehicles increased to 7% share, indicating a steady adoption growth.
Amongst manufacturers, Maruti Suzuki continued to dominate the market with a 41.55% share, gaining 3.26% points YoY, primarily driven by its extensive portfolio and strong demand across segments. Tata Motors strengthened its second position with a 13.62% share and 1.55% volume growth supported by SUVs and EVs. Mahindra held the third position at 12.71% but experienced a 1.88% decline.
The May 2026 performance highlights a market that is growing but also consolidating, with leading OEMs strengthening their dominance. Strong SUV demand, increasing EV adoption, and rising rural penetration continue to shape the market, while competitive intensity remains high across mid-tier and global brands.
“The number that truly stands out at JATO Dynamics is rural PV growth at 31.2% YoY,” Bhatia added. “Passenger vehicles penetrating beyond metro and urban India at this pace is a structural shift, not a seasonal spike. OEMs that have built the right product and financing ecosystem for Tier-2 and Tier-3 markets will disproportionately benefit.”
Data source: JATO vehicle registration data as of 1 June 2026. YoY comparison with May 2025. Telangana excluded.
For full rankings, detailed analysis or media enquiries please contact Laura Cameron, laura.cameron@jato.com
About JATO
Founded in 1984, JATO Dynamics is the world’s leading provider of automotive market intelligence. Operating across more than 50 markets worldwide, JATO delivers accurate data and insights on vehicle specifications, pricing, sales and registrations, powering data-driven decisions across the global automotive industry.
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