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Indian Car Market Posts Record May as Maruti, Tata and Mahindra Post Strong Gains

May's surge points to a broad recovery in India’s car market driven by higher fuel costs, new models, rising exports.

Overview

  • Maruti Suzuki set a monthly record with 242,688 dispatches, driven by strong mini, compact and utility‑vehicle demand and a sharp rise in exports.
  • Tata Motors reported a 42% year‑on‑year sales jump and recorded its highest single monthly EV volumes at about 10,500 units, widening its lead in the electric segment.
  • Mahindra sold roughly 99,636 vehicles as SUV demand stayed high, leaving it within about 1,000 units of Tata in the domestic rankings.
  • Vahan registration data shows retail EV sales hit a new peak in May 2026 at roughly 26,221 units, reflecting growing buyer interest after recent fuel price increases.
  • Manufacturers credited new model launches and export growth for the momentum while some makers warned that supplier manpower and parts limits are still constraining output for select models.