May auto sales saw muted passenger car demand, export and EVs clock faster growth

Overall domestic sales, including LCVs, fell 5.5 percent to 1.39 lakh units. What stood out, though, was a near 80 percent jump in exports, Maruti shipped 31,219 units overseas versus 17,367 a year ago. This lifted its total monthly sales to 1.80 lakh units, up 3.2 percent YoY, despite the domestic slowdown.

Mahindra & Mahindra: SUV play pays off

Mahindra clocked a 17 percent rise in total sales at 84,110 units, riding on its SUV dominance. Domestic SUV sales grew 21 percent YoY to 52,431 units, and YTD growth stands at a solid 24 percent. The company also saw strong traction in its critical LCV (2–3.5T) segment, with May volumes rising 14 percent.

Exports surged 37 percent in May and 55 percent for the fiscal year so far. Commenting on the performance, CEO Nalinikanth Gollagunta told CNBC-TV18, “May has been a strong month for both SUVs and LCVs. We expect mid to high-teens growth in SUV volumes for FY26. EV production is on track for full capacity utilisation.”

M&M has also managed inflationary pressure by passing on steel cost hikes in May and stated it is currently well-covered on rare-earth magnet procurement amid global supply concerns.

Hero MotoCorp: Bounces back

After a shaky April, Hero MotoCorp reclaimed the top spot among two-wheeler manufacturers by selling 5.08 lakh units in May. The rebound follows a brief production halt in April to tackle high dealership inventory levels and factory maintenance.

The recovery was driven by resumed demand in the commuter segment, especially 100–125cc motorcycles, which had taken a hit earlier in the fiscal.

TVS Motor: Electrifying growth & gains

TVS posted a robust 17 percent YoY growth with 4.31 lakh units sold in May, which saw electric two-wheeler sales surge by 50 percent on year in May to hitting 27,976 units. Motorcycle and scooter sales climbed 22 percent and 15 percent, respectively, during May.

Exports too delivered, higher by 22 percent YoY to 1.18 lakh units, with two-wheeler exports alone up 21 percent. However, the company warned of possible EV supply chain headwinds, particularly sourcing rare-earth magnets, a concern echoed by Bajaj as well.

TVS Motor too has raised a red flag over China’s curb on export of rare earth magnets - a critical EV motor component - just days after Bajaj Auto expressed production concerns. "The impact of the ban will begin to reflect in production by June or July," Sudarshan Venu, MD, TVS Motor said during an interaction with CNBC-TV18 on June 2, warning that the electric two-wheeler segment could be especially exposed. Rare earth magnets, largely sourced from China, are vital to EV motor’s performance, and any supply disruption could derail production schedules.

Bajaj Auto: Healthy exports cushion market jitters

Bajaj Auto sold 3.85 lakh two-wheelers, marking an 8 percent YoY growth, while commercial vehicle sales grew by 5 percent in May. Exports rose 22 percent, lifting total sales for April–May to 7.50 lakh units.

Despite decent numbers, investors are cautious as they weigh geopolitical supply risks and marginal domestic growth. Executive Director Rakesh Sharma cautioned about “geopolitical stumbling blocks” affecting EV supply chains in the near term.

Ashok Leyland: M&HCVs gain, LCVs lag

Ashok Leyland’s total sales grew 5 percent YoY to 15,484 units in May, with medium and heavy commercial vehicle (M&HCV) sales rising by a strong 11 percent on year while LCV sales falling 4 percent. The company is expected to benefit from India’s infrastructure push but faces challenges in the sub-2T segment.

As small car sales continue to remain muted in domestic market, SUVs, premium two-wheelers, exports, and EVs are emerging as the key growth drivers. However, concerns remain on inventory overhang, rural demand projections, and input cost inflation, factors that may weigh on volumes in the coming quarters.