Gujarat's Luxury Car Market Accelerates to Five-Year High in 2025
Ahmedabad has emerged as the epicenter of Gujarat's rapidly expanding luxury car market, with official data revealing a significant surge in registrations during 2025. According to the latest figures from the Union Ministry of Road Transport and Highways (MoRTH), luxury car registrations in the state reached approximately 4,631 units last year, marking a substantial 7% increase from the 4,333 units recorded in 2024.
Surpassing Pre-Pandemic Performance
This impressive growth represents more than just a year-over-year improvement—it signifies a complete recovery from the pandemic-induced downturn. The 2025 figures comfortably exceeded the pre-Covid peak of 3,426 units achieved in 2019, demonstrating remarkable resilience in the premium automotive segment.
The pandemic years had witnessed a notable contraction in luxury car sales, with registrations dropping to 2,303 units in 2020 and showing only modest recovery to 2,478 units in 2021. These declines were attributed to multiple factors including lockdown restrictions, supply chain disruptions, and consumers deferring major discretionary purchases during uncertain economic conditions.
Expanding Market and Changing Consumer Preferences
The 2025 revival points to several significant trends in Gujarat's automotive landscape. Industry analysts note that luxury vehicles now span an exceptionally broad price spectrum in the state, ranging from entry-level premium SUVs and saloons priced around Rs 45 lakh to ultra-luxury models exceeding Rs 2.5 crore in Ahmedabad ex-showroom terms.
Pranav Shah, chairperson of the Federation of Automobile Dealers' Association (FADA) – Gujarat, highlighted the shifting consumer preferences driving this growth. "Buyers are increasingly favoring higher ground clearance, enhanced road presence, and feature-rich models suitable for both urban and highway driving," he explained. "This represents a fundamental shift away from the traditional dominance of luxury saloons."
Democratization of Luxury Car Ownership
Perhaps most significantly, the luxury car market in Gujarat has expanded beyond its traditional base of ultra-high net worth individuals. Shah noted that first-generation entrepreneurs, successful professionals, and family-owned business promoters now constitute a growing segment of luxury car buyers in the state.
This broadening of the customer base has been facilitated by several factors:
- Increased availability of financing options making premium vehicles more accessible
- A steady stream of new model launches across various price points
- The introduction of electric variants appealing to environmentally conscious affluent buyers
Electric Vehicles Gain Traction in Premium Segment
Registrations of premium electric vehicles showed particular strength in 2025, supported by multiple favorable developments:
- Improved charging infrastructure across Gujarat's urban centers
- Growing corporate fleet demand for premium EVs
- Increasing willingness among affluent consumers to experiment with new automotive technologies
Positive Outlook for 2026 and Beyond
Industry observers remain optimistic about continued momentum in Gujarat's luxury car market. A prominent Ahmedabad-based dealer commented, "New model launches, expanding electric vehicle options, sustained urban wealth creation, and potential benefits from the India-EU trade agreement making certain components more affordable are likely to maintain Gujarat's position as one of India's fastest-growing luxury automotive markets."
Barring unexpected macroeconomic shocks, market watchers expect the positive trend to extend into 2026 and potentially beyond. The combination of evolving consumer preferences, product innovation, and favorable economic conditions appears to have created a sustainable growth trajectory for luxury vehicles in Gujarat, with Ahmedabad continuing to lead this automotive renaissance.
