Gujarat Vehicle Sales Rise 25.8% in Jan-Aug as Demand for CNG, Hybrids Grows

Ahmedabad: Vehicle sales in Gujarat maintained strong momentum from January to August, with passenger vehicle and two-wheeler registrations recording healthy year-on-year growth, according to data from the Federation of Automobile Dealers Associations (FADA).

Passenger vehicle retail sales rose to 2.7 lakh units, from 2.2 lakh units during the same period in 2025. Two-wheeler sales increased from 7.8 lakh to 9.9 lakh units, registering 25.8% growth.

In August alone, Gujarat recorded 32,626 passenger vehicle and 1.3 lakh two-wheeler registrations, highlighting strong demand ahead of the festive season.

The January-August period also saw a marked shift towards alternative-fuel vehicles. Nearly half of passenger vehicle registrations were from non-conventional powertrains, with rising fuel costs and crude oil price uncertainty encouraging buyers to consider CNG, hybrid and electric vehicles.

CNG vehicles remained the dominant alternative-fuel segment. Petrol-CNG and petrol E20-CNG vehicles together accounted for 1.06 lakh registrations, or nearly 39% of passenger vehicles registered during the period. Hybrids recorded 9,101 registrations, while pure electric, hybrid electric and battery-operated vehicles together accounted for 21,887 registrations.

FADA Gujarat chairman Hitendra Nanavati said hybrids could become a key growth segment, particularly in the ₹15-20 lakh price range, as improved technology and fuel efficiency make them more attractive to buyers.

According to FADA, improved household cash flows following GST cuts have supported vehicle demand. However, industry stakeholders remain cautious about rural consumption, with monsoon conditions and the possibility of deficient rainfall posing a risk to demand in the coming months. DeshGujarat