India's automobile retail market maintained its growth momentum in May 2026 despite headwinds from an intense heatwave, higher fuel prices and geopolitical uncertainties in West Asia. According to the Federation of Automobile Dealers Associations (FADA), overall vehicle registrations rose 9.55% year-on-year to 2.53 million units, marking the best-ever May performance across passenger vehicles, three-wheelers, tractors and overall retail sales.

In terms of segment-wise performance, two-wheeler sales came at 1.84 million units, up 7.54 percent YoY, as against 1.71 million units sold last year. Three-wheeler sales grew 3.56 percent YoY at 111,526 units.

On the other hand, the passenger vehicle segment reported robust retail sales of 402,591 units, which marked a 23.25 percent YoY growth, as compared to 326,656 units a year ago. FADA President, C S Vigneshwar, attributed the performance to robust rural demand, healthy booking pipelines, new product launches and growing adoption of alternative fuel vehicles.  

Tractor sales came at 83,092 units, up 11.17 percent, construction equipment was in the red with sales of 5,088 units, while commercial vehicle retails came at 83,823 units, up 5.29 percent YoY.

Vigneshwar said the “industry had successfully navigated multiple challenges that were flagged earlier, including heatwave conditions, fuel-price pressures and the evolving West Asia situation. While retail volumes declined 6.75 percent sequentially from April due to seasonal factors and a delayed onset of monsoon-linked agricultural activity, he noted that demand remained resilient across segments.”

The shift towards fuel-efficient and alternative powertrains gained momentum during the month. Dealers reported increased customer interest in electric vehicles following the fuel-price revision, with EV penetration in the two-wheeler segment rising to 9.25 percent from 6.11 percent a year ago. In passenger vehicles, alternative fuel models accounted for more than 38 percent of sales, supported by higher CNG and EV adoption.

Looking ahead, dealers remain cautiously optimistic. For June, over half of dealers expect growth, supported by the progress of the southwest monsoon, Kharif sowing preparations, the tail-end of the marriage season and a stable interest-rate environment. Passenger vehicle demand is expected to remain supported by strong bookings and EV launches, while commercial vehicles are likely to benefit from steady goods movement and infrastructure activity.

Confidence improves further for the June-August period, with nearly 60 percent of dealers anticipating growth as monsoon-driven rural incomes strengthen and agricultural activity gathers pace. While fuel prices, financing turnaround times and developments in West Asia remain key risks, the industry expects demand to gradually strengthen through the second quarter, supported by rural recovery, economic growth and continued consumer preference for fuel-efficient vehicles.

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Hero Motors has fixed the price band for its initial public offering at INR 79 to INR 84 per equity share of face value INR 10 each. The offer will open for subscription on Wednesday, 16 September 2026, and close on Friday, 18 September 2026. Bidders can apply for a minimum lot of 178 equity shares and in multiples of 178 equity shares thereafter.

The company’s INR 10 billion public issue comprises a fresh issue of equity shares raising up to INR 6 billion alongside an offer-for-sale of up to INR 4 billion by promoters O P Munjal Holdings and Hero Cycles. Out of the fresh issue proceeds, the company will allocate INR 1.9 billion toward the repayment or prepayment of outstanding borrowings and INR 2 billion for capital expenditure to purchase equipment for capacity expansion at its Gautam Buddha Nagar facility in Uttar Pradesh. The remaining capital will fund inorganic growth acquisitions, strategic initiatives, and general corporate activities.

Hero Motors operates as an automotive technology company designing, developing, and manufacturing powertrain solutions for original equipment manufacturers across the United States, Europe, India and the ASEAN region. The company provides integrated system-level and component-level powertrain products, electric motors, integrated drive units, gear sets and continuously variable transmissions for electric and non-electric applications. Its client portfolio includes two-wheelers, performance cars, e-bikes, off-road vehicles, electric and hybrid automobiles, heavy-duty commercial transport, and electric vertical take-off and landing aircraft.

The company supplies global original equipment manufacturers and component firms including BMW AG, Ducati Motor Holding, Enviolo International, Formula Motorsport, Hummingbird EV and HWA AG.

The IPO is structured through the book-building process, allocating up to 50 percent of the net offer to qualified institutional buyers, a minimum of 15 percent to non-institutional bidders and a minimum of 35 percent to retail individual bidders.

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Zuno General Insurance has launched Fuel Guard, an industry-first car insurance add-on. As per the new-age digital insurer, the product offers extra protection amid India’s growing adoption of approved blended fuels.

Fuel Guard covers specified engine and fuel-system components against accidental and unforeseen damage caused directly by manufacturer-approved blended fuel. It is available for private cars registered on or after 1 April 2023, provided the manufacturer has approved the fuel used.

Vehicles must follow the prescribed maintenance schedule and have no unauthorised engine or fuel-system modifications. The cover can be added to applicable private car package, standalone own damage and bundled policies, including three-year long-term policies. Zuno said the launch reinforces its customer-focused motor protection strategy, following offerings such as Zuno SmartDrive.

Shanai Ghosh, MD & CEO, Zuno General Insurance, said, "At its core, Fuel Guard is built around a simple idea: as the mobility ecosystem evolves, insurance protection needs to evolve with it. At Zuno, we continuously look at how changes in mobility are shaping customer expectations and ownership experiences. Fuel Guard reflects our effort to translate those insights into simple, practical solutions that make protection more relevant in everyday life."

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Chennai-headquartered electric vehicle company Raptee.HV has opened an electric mobility Centre of Excellence at Rajalakshmi Engineering College, establishing an industry-academia partnership focused on electric vehicle technology.

The new facility, inaugurated on World EV Day, is spread across 3,000 square feet and will operate under the Raptee.HV Academy initiative will introduce industrial exposure and prototyping tools to academic institutions.

The project represents an INR 5 million investment and accompanies a Memorandum of Understanding signed between Raptee.HV and Rajalakshmi Engineering College. The agreement covers industrial training, site visits, guest lectures, internships, academic courses and research projects.

It is designed for students across electrical, electronics and automotive engineering; the laboratory contains a Raptee.HV T30 motorcycle, core electric vehicle components, a stripped motorcycle fitted with digital twin technology and equipment for testing battery packs, electric motors, power electronics, charging systems, vehicle communications and diagnostics.

Dinesh Arjun, Co-Founder and CEO, Raptee.HV, said, "The next generation of mobility will be built by engineers who understand the machine from the cell to the software. But you cannot build that understanding from a classroom alone. You have to get your hands dirty, take systems apart, question how they work, experiment and build again. The HV Lab is our attempt to bring that experience into engineering education. If even a few students walk out of this lab wanting to build the next great EV technology, we have done our job."

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Zuno General Insurance has launched Fuel Guard, a car insurance add-on offering financial protection against component damage caused by manufacturer-approved blended fuels.

The policy addition targets private motor vehicles in India as alternative and blended fuel adoption expands across the country. The coverage applies to specified engine and fuel-system parts in cases of accidental or unforeseen damage arising directly from approved blended fuel use.

At present, the insurance cover eligibility is restricted to private cars registered on or after 1 April 2023, provided the vehicle manufacturer has endorsed the specific fuel blend used. Vehicle owners must adhere to the manufacturer's prescribed maintenance schedule without making unauthorised modifications to the engine or fuel system. Fuel Guard can be added to private car package policies, standalone own-damage coverage, bundled options and three-year long-term policies.

Shanai Ghosh, Managing Director and CEO, Zuno General Insurance, said, "At its core, Fuel Guard is built around a simple idea: as the mobility ecosystem evolves, insurance protection needs to evolve with it. At Zuno, we continuously look at how changes in mobility are shaping customer expectations and ownership experiences. Fuel Guard reflects our effort to translate those insights into simple, practical solutions that make protection more relevant in everyday life."

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