Indian automakers' sales rise in May despite rising fuel prices (updated)

Hyundai Motor India

01/06/2026 12:34

Rewrites with detail from carmakers, adds comment from Maruti Suzuki executive
By Surbhi Misra

    BENGALURU, June 1 (Reuters) - India's top carmakers reported higher sales in May, with market leader Maruti Suzuki MRTI.NS saying bookings for its compressed natural gas vehicles jumped 40% after fuel prices rose due to the energy shock from the Iran war.
India raised petrol and diesel prices at least four times during May to offset losses from soaring crude oil costs linked to the Iran conflict, adding to automakers' woes as they also grapple with higher raw material costs, supply-chain disruptions and labour issues.
Automakers across the board reported higher domestic sales on Monday, with SUV maker Mahindra & Mahindra MAHM.NS reporting an 11% year-over-year rise, Hyundai Motor India HYUN.NS a 9.1% increase and Tata Motors Passenger Vehicles TAMO.NS a 42% jump.
To cope with rising costs, Maruti, Mahindra, Tata and Hyundai have already raised prices from June.
Partho Banerjee, Maruti Suzuki India's senior executive officer for marketing and sales, said that Maruti had "no choice" but to pass on higher costs to customers, adding that the firm would monitor the war before deciding further price hikes.

LURE OF ALTERNATIVE FUELS    
As result, CNG vehicle bookings jumped since the price hikes, as they offer "significantly lower running costs than petrol-powered vehicles," Banerjee told reporters. 
For May, Maruti reported a record high monthly sale of about 78,000 CNG vehicles while its overall vehicle exports rose 34% in May, despite a slowdown in shipments to the Middle East.
Hyundai Motor India's exports fell 10.4% from a year earlier. 

 (Reporting by Surbhi Misra and Nishit Navin, writing by Chandini Monnappa; Editing by Mrigank Dhaniwala)
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