Passenger vehicle retail sales surged 23.25 % year-on-year to 402,591 units in May, helping the country’s loverall auto retail market grow 9.55 % to 2.53 million units despite a sharp fuel-price hike, intense heatwave conditions and geopolitical tensions in West Asia, according to data released by the Federation of Automobile Dealers Associations (FADA).

“The growth was unexpected despite what is going on in the market. The booking backlog helped push sales, while rural sales saw 30 % growth, which also supported demand,” said Sai Girdhar, vice-president, FADA.

The passenger vehicle story was driven largely by rural India rather than metropolitan cities. Rural PV sales jumped 30.35 % , significantly outpacing the 18.8 % growth recorded in urban markets, reflecting stronger rural consumption and improving farm incomes. Demand was aided by a revival in small cars alongside continued strength in SUVs.