New Delhi: Domestic passenger vehicle dispatches from manufacturers to dealers in India surged by 27.3% year-on-year to a record 4,38,854 units in May, driven by strong demand supported by reduced GST rates and easier access to vehicle financing, according to industry body Society of Indian Automobile Manufacturers (SIAM).     

In comparison, dispatches stood at 3,44,656 units in May 2025, SIAM said in its latest statement.

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Overall, two-wheeler sales rose 14.8% to 19,02,209 units last month, up from 16,57,116 units in the corresponding period last year.

SIAM Director General Rajesh Menon said passenger vehicles, three-wheelers and two-wheelers all recorded their highest-ever May sales in 2026, each segment registering strong double-digit growth.

He attributed the momentum to a low base effect from the previous year and increased demand following GST reductions and improved financing availability, which continued to boost market sentiment.

Three-wheeler dispatches also rose sharply by 31.1% to 70,720 units, compared with 53,942 units in the same month last year.

Within the passenger vehicle segment, utility vehicles remained the key growth driver, rising 24.8% to 2,45,549 units. Passenger car dispatches increased by 28.8% to 1,20,975 units, while van sales grew 7.4% to 13,240 units.

In the two-wheeler category, motorcycle sales increased 7.2% to 11,13,973 units, while scooter sales recorded stronger growth of 27.4% at 7,39,667 units.

Overall, total vehicle wholesales across all categories grew 16.8% year-on-year to 23,52,693 units in May, reflecting broad-based demand across the automotive sector.

(PTI)