While urban markets remained significant contributors, dealers reported a clear rise in rural bookings, supported by improved farm incomes and better liquidity in agriculture-linked regions.Gujarat’s passenger vehicle (PV) market posted one of the strongest performances in the country in November, with retail sales rising 42.36 per cent year-on-year, according to data from the Federation of Automobile Dealers Association (FADA). The state registered 36,101 PVs during the month, sharply higher than the 25,359 units sold in November 2024 and more than double the national PV growth rate of 19.71 per cent. Industry executives say the momentum has been driven by sustained post-festival purchases, buoyant sentiment among the state’s business community, and improving rural demand, as per a report by Times of India.
Festive sales spike continue
“Excellent growth continued even after the festivals. The GST reduction effect is still visible in buying sentiment,” said Pranav Shah, chairperson of FADA Gujarat. “In Gujarat, we have a large business community that traditionally purchases vehicles after the festive period, and rural demand has also been quite strong.”
Dealers note that Gujarat’s cultural preference for post-Diwali purchases — often considered auspicious for business families — extended the sales run well into November. A senior RTO official said the spike was largely due to deliveries of bookings made during Navratri and Diwali that flowed into the following month.
“A large number of bookings made during the festive period were delivered only after the festivities, which has pushed up the November registration figures. Beyond this delayed-delivery effect, we do not see any extraordinary rush contributing to the increase,” the official said, adding that showrooms have also been nudging customers by indicating likely price hikes in popular models.
The GST rate cut on PVs earlier this year has kept buying interest strong, particularly in compact SUVs and entry-level sedans. While urban markets remained significant contributors, dealers reported a clear rise in rural bookings, supported by improved farm incomes and better liquidity in agriculture-linked regions.
With year-end schemes now in play and inventory levels stabilising, dealers expect December to remain healthy, though not at November’s elevated post-festival levels.
