AHMEDABAD: The rising demand for electric cars as well as sports utility vehicles (SUVs) has clearly accelerated the demand for new cars in May this year. According to data by Federation of Automobile Dealers' Association (FADA) Gujarat, car sales went up 11.3% in May 2023. In all 25,927 units were retailed during the month against 23,305 units in the same period last year.
During the month, 87,164 two-wheelers were retailed as against 68,621 during the previous year. Commenting on the trend, Hitendra Nanavati, chairman, FADA Gujarat, said, "Yet again, vehicle sales in Gujarat have grown 24% in May, outperforming the national average. Overall improvement in the economy is one of the key reasons for the rise in sales and we expect a better monsoon to further boost the scenario."
According to FADA, impressive strides by the electric vehicle segment did contribute significantly to total vehicle retail along with the demand for SUVs. "The demand is very good in the mid- to high-end segment, especially for SUVs. People now seek comfortable rides over and above a good mileage while buying cars, as many of them tend to take longer drives for weekend getaways. As a result, the demand for SUVs has particularly picked up well. With government subsidies, even EV sales have fared far better," said Pranav Shah, past chairman, FADA Gujarat.
In fact, Gujarat's vehicle sale growth has outshone the pan India average. According to FADA, vehicle sales zoomed 24% in Gujarat, mainly driven by two-wheelers as well as passenger vehicle sales. On the other hand, two-wheeler sales picked up well, influenced by wedding season and ahead of college reopening. "Two-wheeler EV sales have fared well overall due to the wedding season, subsidies rolled out by the government and improvement in rural demand. We look forward to an improved demand in June as well with Rath Yatra falling this month which will drive muhurat purchases," said Shah. In fact, according to automobile dealers, vehicle bookings for Rath Yatra have begun picking up pace.
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