Ahmedabad: Gujarat’s automobile market is witnessing divergent trends, with passenger vehicle sales remaining resilient even as two-wheeler demand weakens and festive season purchases lose momentum. Two-wheeler registrations declined 13.3% year-on-year to 2.2 lakh units in Oct, while passenger vehicle registrations rose 12.7% to 55,487 units, according to data released by the Federation of Automobile Dealers Associations (FADA).The contrasting trend was also evident during Dhanteras, traditionally considered an auspicious occasion for vehicle purchases. Gujarat recorded lower registrations of both cars and two-wheelers on Dhanteras this year compared to 2025. Car registrations fell 30.3% to 2,590 units from 3,718 a year ago, while two-wheeler registrations declined 13.3% to 10,864 units from 12,525.Vehicle dealers attributed the slowdown in festive sales mainly to subdued rural demand, particularly in the two-wheeler segment.Pranav Shah, national chairperson of FADA’s two-wheeler vertical, said the festive comparison was affected by a shift in the calendar. “Dhanteras and Diwali fell in Nov this year, unlike Oct last year, shifting part of the festive buying activity beyond Oct,” he said.The festive-day figures indicate softer buying activity across both segments despite growth in monthly passenger vehicle registrations. While cars performed better over the month, that strength did not translate into higher Dhanteras sales.“We expect two-wheeler sales to grow by 7-8%, with overall growth of 9-10% during the Diwali period. Purchases may also continue until Dev Diwali, as some customers could wait for festive bonuses, which are often disbursed around Dhanteras,” Shah said.He added that rural demand for two-wheelers remained encouraging and broadly in line with overall market growth. In the passenger vehicle segment, SUVs and compact SUVs continue to drive demand, while sales of diesel models are declining. Hybrid vehicles, he said, are offsetting some of that weakness.Dealers also noted that demand for electric vehicles remains robust. According to them, the moderation in registrations is primarily due to waiting periods and supply constraints rather than any decline in consumer interest.Overall, Gujarat recorded 3 lakh vehicle registrations across categories in Oct, reflecting a 7.2% year-on-year decline.Hitendra Nanavati, chairperson of FADA Gujarat, said the industry remained optimistic about demand in the coming months, supported by a good monsoon, improving rural sentiment and stronger consumer confidence.“We expect demand to gain further momentum in the coming months. With the festive season extending into Nov, we anticipate a strong revival in customer enquiries and conversions across vehicle segments. We remain optimistic that the final two months of 2026 will help the sector close the year on a strong note,” he said.
