The automobile industry is recovering well, especially in Gujarat. In June 2025, vehicle sales saw a significant increase compared to June 2024. The Federation of Automobile Dealers Associations (FADA) reported that Gujarat sold 25,257 cars and over 100,000 two-wheelers last month. This is an increase from 23,214 cars and more than 84,000 two-wheelers in June 2024. This shows an impressive year-on-year growth of 8.8% for cars and 18.63% for two-wheelers.
Overall vehicle sales in Gujarat grew by nearly 13%. They increased from over 124,000 units in June 2024 to more than 140,000 units in June 2025. On a national level, vehicle sales also improved by 5%. In June 2025, over 2 million vehicles were sold in India compared to around 1.9 million the previous year.
Pranav Shah, Chairperson of FADA Gujarat, stated that after a small dip in the previous months, the auto retail sector in Gujarat has bounced back strongly. However, he noted that the year-on-year comparison might not be entirely reliable. Last year, the Rathyatra festival, a significant event that drives vehicle sales, occurred in July. Shah is optimistic about the upcoming festive season due to a favourable monsoon and improving economic conditions.
Interestingly, tractor sales in Gujarat fell sharply by 58% compared to June 2024. In contrast, tractor sales across India grew by nearly 9%. On the other hand, sales of construction equipment vehicles surged in Gujarat, with a 71% increase, and a 54% increase nationally. Commercial vehicle sales also rose modestly, up over 3% in Gujarat and 6.6% across India during the same period.
These trends show a positive sign for the automotive industry in Gujarat. The increased sales of cars and two-wheelers indicate a recovering economy and growing consumer confidence. With more people buying vehicles, the outlook for the future seems bright.
As Gujarat continues to lead in vehicle sales growth, it is clear that the state’s economic recovery is underway. With the expected increase in demand due to festivals and improved weather conditions, the automotive sector in Gujarat is likely to see further growth in the coming months.
The recent data is encouraging for manufacturers and dealers in the state. More consumers are looking to purchase vehicles, which could result in increased production and sales in the automotive industry. The overall positive trend in vehicle sales in Gujarat is a promising sign for both the local economy and the automobile sector at large.
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