Ahmedabad: The automobile retail sector in Gujarat witnessed a “boom” in March 2026, recording an overall year-on-year growth of 38.88%, according to the latest data released by the Federation of Automobile Dealers Associations (FADA). Total vehicle registrations for the month climbed to 1,91,804 units, up from 1,38,108 units in March 2025.

Record-Breaking Performance in Key Segments

The surge was primarily driven by the Passenger Vehicle (PV) and Two-Wheeler (2W) segments, both of which recorded growth exceeding 40%.

Passenger Vehicles: This segment, which includes private cars, SUVs, and vans, grew by 45.53%, with 37,896 units sold compared to 26,040 units in the previous year.

Two-Wheelers: Sales reached 1,34,950 units, representing a robust 40.38% increase.

Commercial Vehicles (CV) and Three-Wheelers (3W): These categories also posted double-digit gains of 27.20% and 24.49%, respectively.

Electric Vehicles and Global Influences

FADA Gujarat State Chairperson, Pranav H Shah, highlighted “sharp growth” in the Electric Vehicle (EV) segment, noting that customer enquiries jumped by nearly 300%. This sudden shift in consumer interest is reportedly linked to ongoing geopolitical tensions in the Gulf region, which have likely influenced fuel concerns and accelerated the transition to electric alternatives.

“Auto retail boomed in March, with more than 40% growth in cars and two-wheelers. Overall growth has been registered across all segments.

Particularly, we have observed sharp growth in the EV segment. Enquiries jumped almost 300%. This is mainly due to war and Gulf issues. FY26 was very good for the auto industry. Post-GST cut, the growth momentum continued till March. Rural demand is also good,” he said.

Furthermore, for the full fiscal year 2025–26, Gujarat recorded total vehicle sales of 22,31,997 units, marking an 18.01% increase over FY25. Additionally, Gujarat’s growth outpaced the national average for the month. While the state’s total retail grew by nearly 39%, all-India vehicle retail growth for March 2026 stood at 25.28%.

Tractor Segment Sees a Dip

Despite widespread gains, the tractor segment was the only category to witness a decline in March 2026. Retail sales dropped by 21.24%, falling from 1,987 units in March 2025 to 1,565 units this year. DeshGujarat