Ahmedabad: Vehicle sales in Gujarat gathered pace between Jan and Aug, with both passenger vehicles and two-wheelers registering strong growth, according to data released by the Federation of Automobile Dealers Associations (FADA). During the period, 2.7 lakh passenger vehicles were retailed across the state, up from 2.2 lakh units in the corresponding period of 2025. Two-wheeler sales climbed from 7.8 lakh to 9.9 lakh units, marking a 25.8% increase.Consumer preferences showed a significant shift towards alternate-fuel vehicles. Nearly half of all passenger vehicle sales during the period came from non-conventional powertrains. Rising fuel costs and concerns over crude oil price volatility have prompted buyers to increasingly opt for CNG, hybrid, and electric vehicles over traditional petrol and diesel models.Data from the Union ministry of road transport and highways (MoRTH) showed that petrol and E20-petrol vehicles accounted for 27.8% of total passenger vehicle registrations, while diesel vehicles made up 21.7%. The remaining share largely came from alternate-fuel segments.“EVs remain a relatively small part of the market but are growing steadily every month. Concerns over fuel prices amid geopolitical uncertainties are encouraging buyers to consider alternate powertrains. The arrival of more hybrid models is also expanding consumer choice,” said Pranav Shah, former chairman of FADA Gujarat.He added that fears of a possible rise in crude oil prices are pushing consumers towards alternate-fuel vehicles. “Manufacturers such as Maruti and Toyota are increasingly launching hybrid models, giving customers a genuine alternative,” Shah said.CNG vehicles continue to lead the transition. Petrol-CNG and petrol E20-CNG models together accounted for 1.06 lakh registrations, or nearly 39% of all passenger vehicles registered during the period. Hybrids contributed 9,101 registrations, while pure electric, hybrid electric and battery-operated vehicles together accounted for 21,887 registrations.Hitendra Nanavati, chairman of FADA Gujarat, said hybrids could emerge as a key growth segment, particularly in the Rs 15-20 lakh price bracket. “Improved technology and newer, fuel-efficient models offer customers the best of both worlds. As a result, demand for hybrids is strengthening,” he said.Industry stakeholders expect the upcoming festive season to further boost sales as families traditionally prefer making major purchases during auspicious periods.Two-wheeler demand also remained robust, recording year-on-year growth every month during the period, with the strongest gains seen in Jan and March.The Aug figures carry added significance as Gujarat enters the festive buying season. The state recorded 32,626 passenger vehicle registrations and 1.3 lakh two-wheeler registrations during the month.According to FADA, improved household cash flows following GST cuts have supported the rise in vehicle demand. However, industry leaders remain cautious about risks to rural consumption. “Monsoon conditions and the possibility of a rainfall shortfall could affect rural demand in the coming months,” Shah said.
