Surat: The city, recognized as Gujarat’s economic hub, continues to witness a massive surge in the automobile sector, with an average of 100 cars and 500 two-wheelers sold daily. Recent data from the Surat RTO for the 2025–26 financial year (April 2025 to March 2026) reveals that the total value of registered vehicles has surpassed ₹6,900 crore.

The city recorded sales of 1,82,556 two-wheelers, valued at approximately ₹1,900 crore, and 36,700 cars, with a total value exceeding ₹5,000 crore. This marks a steady increase from the previous financial year, which saw 1,53,712 two-wheelers and 36,071 cars sold.

Additionally, the city’s elite have shown a strong preference for ultra-luxury brands, with 30 vehicles priced above ₹1.50 crore registered this year. These include prestigious brands such as Tesla, BMW, Audi, Mercedes-Benz, Jaguar, Porsche, and Aston Martin.

The middle class is also driving volume, with a high reliance on financing; approximately 90% of cars and 60% of two-wheelers are purchased through bank loans.

Electric Vehicle Trends and Incentives

Despite overall market growth, the electric vehicle (EV) segment has seen a decline. In 2025–26, 10,816 electric vehicles were registered, down from a peak of 29,566 in 2023–24. To encourage a shift back toward green mobility, the city civic body has announced several incentives, including tax waiver schemes for electric vehicles.

A Windfall for the Treasury

The surge in vehicle registrations has significantly boosted government revenues. Collections have been driven by the 28% GST on vehicle sales, along with RTO and municipal taxes, generating hundreds of crores in income for both state and central governments. DeshGujarat