The increasing demand for electric cars and sports utility vehicles (SUVs) has noticeably accelerated the demand for new cars in May of this year. According to data from the Federation of Automobile Dealers’ Association (FADA) Gujarat, car sales increased by 11.3% in May 2023. A total of 25,927 units were sold during the month, compared to 23,305 units in the same period last year.

During the month, 87,164 two-wheelers were sold, as opposed to 68,621 the previous year. Hitendra Nanavati, chairman of FADA Gujarat, commented on this trend, stating that vehicle sales in Gujarat had once again grown by 24% in May, surpassing the national average. The overall improvement in the economy is one of the key factors contributing to the increase in sales, and there are expectations that a better monsoon will further boost the situation.

According to FADA, the impressive progress made by the electric vehicle segment has significantly contributed to the overall vehicle sales, along with the demand for SUVs. Pranav Shah, past chairman of FADA Gujarat, stated that there is a strong demand in the mid- to high-end segment, specifically for SUVs. People are now prioritizing comfortable rides in addition to good mileage when purchasing cars, as many of them take longer drives for weekend getaways. As a result, the demand for SUVs has seen a significant increase. With government subsidies, even electric vehicle sales have performed well.

Interestingly, the vehicle sales growth in Gujarat has exceeded the national average. According to FADA, vehicle sales have seen a 24% increase in Gujarat, driven primarily by two-wheelers and passenger vehicle sales. On the other hand, two-wheeler sales have picked up well, influenced by the wedding season and upcoming college reopenings. Pranav Shah stated that overall, two-wheeler electric vehicle sales have performed well due to the wedding season, government subsidies, and improved rural demand. It is anticipated that there will be an increased demand in June as well, with Rath Yatra falling in this month, which will drive muhurat purchases. In fact, automobile dealers have reported that vehicle bookings for Rath Yatra have already begun to pick up pace.

By Nitesh