Overview
- Passenger vehicle retail registrations fell 3% year-on-year to 302,214 units in May as consumers in border regions delayed purchases over India-Pakistan tensions.
- Two-wheeler retail sales rose 7% to 1.65 million units, driven by rural demand, auspicious marriage dates, and pre-monsoon buying.
- Dealers faced inventory levels of 52–53 days of supply, more than double FADA’s 21-day benchmark.
- Electric vehicles accounted for over 4% of passenger vehicle sales in May, marking a first-time milestone for the segment.
- The Federation of Automobile Dealers Associations predicts a cautious June recovery supported by monsoon-linked rural spending and potential Reserve Bank of India rate cuts.