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Time of India
2 days ago
- Automotive
- Time of India
Car sales decline for 4th consecutive month in May
Ahmedabad: The downward trend of passenger car sales in Gujarat continued in May 2025, primarily impacted by rising vehicle prices, restrained consumer sentiment, and the ripple effects of the recent stock market crash. Tired of too many ads? go ad free now According to the latest data from the Union Ministry of Road Transport and Highways (MoRTH), four-wheeler registrations fell 4% year-on-year, from 24,847 units in May 2024 to 23,843 last month, marking the fourth consecutive month of slowing sales momentum. From steep price hikes to vanishing discounts, several headwinds are keeping first-time buyers away from showrooms. "The entry-level segment has virtually disappeared. The typical first-time buyer — usually opting for a hatchback or compact — is no longer walking in. Affordability is the key issue. Incomes didn't keep pace with car prices. The cheapest entry-level model at our showroom cost Rs 3.6 lakh (ex-showroom) in 2020; today, it's Rs 4.93 lakh," said Jigar Vyas, CEO of a city-based car dealership. "Frequent price hikes and mandatory safety upgrades like six airbags pushed up entry-level costs further," he added. Even India's largest carmaker, Maruti Suzuki, reported a 5.6% drop in overall domestic passenger vehicle sales in May, with its budget-friendly mini and compact models — including the Alto, WagonR, Swift, and Baleno — falling 12.6%. Dealers say the slump is largely concentrated in the mass segment, while premium and hybrid models continue to attract buyers. Rising demand for pre-owned vehicles is also denting sales of entry-level cars. Tired of too many ads? go ad free now "With organised players entering the used-car space, buyers now have access to reliable, well-financed vehicles at lower costs. Many opt for a bigger pre-owned car instead of a new entry-level model at a similar price point," said Pranav Shah, chairperson of the Federation of Automobile Dealers' Associations (FADA) – Gujarat. Dealers further cited tensions between India and Pakistan as another factor behind consumer caution. "Many buyers didn't recover from market losses, and the geopolitical situation made them even more wary. Overall, spending remains very cautious," Shah added. Industry players are now pinning their hopes on Rath Yatra for car purchases. The sluggish sentiment extended to the two-wheeler segment, which grew just 1.8% in May—93,983 units sold versus 92,278 a year ago. Dealers expect rural sales to pick up in the coming months, aided by forecasts of a normal monsoon. (GFX sent to designers) Box: Vehicle Sales Category May-24 May-25 % Change Four-Wheeler 24,847 23,843 -4.0 Two-Wheeler 92,278 93,983 1.8 Source: MoRTH
Time of India
28-05-2025
- Automotive
- Time of India
Gujarat goes full throttle on CNG cars, petrol loses the lead
The tide is turning on Gujarat's roads — and it's powered by CNG. For the first time in Gujarat's auto history, CNG cars have outsold petrol ones. In FY 2025, sales of CNG and petrol-CNG vehicles touched 1.25 lakh units, beating petrol car sales which stood at 1.18 lakh, according to data by the Union ministry of road transport and highways (MoRTH). The shift signals changing consumer priorities — from power to practicality. As fuel prices rise, buyers are looking for smarter, cheaper ways to commute. This is a clear reversal of a long-standing trend in a state where petrol has traditionally been the fuel of choice for most car owners. In FY 2021, petrol car sales at 1.39 lakh units were more than three times those of CNG sales of 40,560 units. Experts attribute the change to rising fuel prices, the growing availability of factory-fitted CNG variants, and the cost advantage of running a car on compressed natural gas . "Diesel vehicles are expensive and, therefore, preferred only by SUV owners largely than other smaller compact cars and sedans. In such cases, CNG variants always are preferred for their better range as well as reliability," said Pranav Shah, chairperson of the Federation of Automobile Dealers' Association (FADA), Gujarat. The CNG boom is largely driven by petrol-CNG variants, which allow buyers the flexibility of running on either fuel while substantially lowering operational costs. "Popular hatchbacks and compact sedans now come with factory-fitted CNG kits, and several manufacturers have ramped up production to meet rising demand," said a car dealer in the city. Dealers say even entry-level SUV buyers are considering CNG options as and when available. Diesel cars, too, held their ground, with sales touching over 73,000 units this year — slightly higher than last year and up nearly double from FY 2021. The sustained interest in diesel stems from the continuing popularity of SUVs and compact SUVs in Gujarat, a trend which was earlier limited to semi-urban and rural areas only. While CNG and diesel car sales are holding fort over the past five years, petrol cars have seen a steady decline — from nearly 1.55 lakh units in FY 2023 to under 1.19 lakh this year. As more buyers prioritise running costs, petrol is no longer the default choice it once was. Electric vehicles (EVs) and hybrids are still a small fraction of overall sales but are beginning to show momentum. Sales of strong hybrid vehicles surged to over 6,300 units in FY 2025, up from just 100 last year, driven by new model launches and rising awareness about fuel economy. EV adoption in the state remains modest at around 6,200 units (including both pure EV and BOV), though experts say the segment is likely to pick up pace as charging infrastructure improves and more mass-market models hit the roads.
Time of India
05-05-2025
- Automotive
- Time of India
Cautious sentiments pull brakes on car sales in Gujarat
Ahmedabad: The automotive sector in Gujarat demonstrated a modest recovery in April, with sales increasing by 4.7%, reaching 27,326 units compared to 26,105 units in April 2024. However, the overall market outlook remains conservative, primarily affected by stock market challenges and decreased rural consumption. Statistics from the union ministry of road transport and highways reveal a cautious consumer behaviour pattern. Despite the slight increase in car sales, two-wheeler purchases decreased by 1.5% compared to the previous year in Gujarat, indicating a broader deceleration in vehicle purchases. Federation of Automobile Dealers Associations (FADA) — Gujarat representatives stressed the importance of economic stability for rebuilding consumer trust. You Can Also Check: Ahmedabad AQI | Weather in Ahmedabad | Bank Holidays in Ahmedabad | Public Holidays in Ahmedabad "The new financial year began on a modest note as overall retails in April managed to grow by 3% year-on-year across India. As the tariff war paused, stock markets showed a good pullback, putting investor concerns to rest at least for the time being. Thus, the Chaitra Navratri, Akshay Tritiya muhurats drove sales," stated FADA officials. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Scarlett Johansson, 40, Shows Off Her Real Size In A New Vacation Photos 33 Bridges Undo "This performance reflects a discount-led market and elevated inventories — approximately a 50-day supply — amid cautious consumer sentiment that tempered enquiry-to-sale conversions. Sustained SUV demand underpinned volumes even as entry-level customers remained cautious," said Pranav Shah, chairperson, FADA — Gujarat. "Two-wheeler costs went up in the recent past and therefore, customers are not able to accept the new prices and as a result, demand is muted. Rural demand continues to remain weak for two-wheelers as well as four-wheelers mainly due to subdued earnings," Shah explained. Industry analysts suggest that passenger vehicle sales will remain stable but subdued, as consumers await new models and deal with high financing rates. A senior road transport office (RTO) official noted that prospective four-wheeler buyers were anticipating budget incentives, and following announcements by the Gujarat govt, electric vehicle buyers were holding off. Despite recent improvements, the stock market volatility has contributed to the situation. "Many buyers, particularly in urban areas, rely on their stock market investments to fund large-ticket purchases, including cars. With the market in a downturn, many potential buyers have postponed their vehicle purchases because many were clearly dependent on market returns for down payments to avoid paying loans," said a city-based car dealer. Industry specialists indicate that car sales might not show consistent growth in upcoming months without improved economic conditions. GFX sent to designers Box: Vehicle sales in Gujarat Sales April 2024 April 2025 % Change Cars 26,105 27,326 4.7 Two Wheelers 97,572 96,065 -1.5 Source: Union Ministry of Road Transport and Highways
