Ahmedabad: The automobile retail market in Gujarat continued to see growth in May 2026, with total vehicle sales crossing 1.58 lakh units, marking an 18.16% increase compared to the same month last year, the Federation of Automobile Dealers Associations (FADA) said.

Two-wheelers remained the largest contributor to vehicle sales in the state. Retail sales in the segment rose 16.04% year-on-year to over 1.09 lakh units, up from 93,992 units sold in May 2025.

The three-wheeler segment recorded the highest growth rate among major categories, with sales rising 27.11% to 7,515 units. The increase was largely driven by demand for last-mile transportation and small-scale cargo movement.

Passenger vehicle sales also posted impressive gains. Retail sales of cars increased 25.81% year-on-year from 25,450 to 32,018 units, supported by strong consumer demand and the popularity of newly launched models, particularly in the SUV and compact car segments.

Commercial vehicle sales also grew 12.86% to 6,626 units, indicating sustained economic activity and freight movement across Gujarat. Tractor sales also registered healthy growth, climbing 20.57% to 2,198 units, reflecting continued momentum in the agriculture sector.

The only category to witness a decline was wheeled construction equipment, where sales fell 8.81% to 745 units, possibly due to slower progress in certain infrastructure projects.

Gujarat’s performance was in line with the broader national trend. Across the country, vehicle retail sales reached a record high for the month of May at 25.31 lakh units, registering a 9.55% year-on-year increase despite challenges such as heatwaves, higher fuel prices, and global geopolitical uncertainties. DeshGujarat