Ahmedabad: Rumours of fuel shortages that swept through Gujarat in March when the West Asia crisis was at its peak had a ripple effect on how Gujarat preferred its vehicles. Buyers walking into showrooms inquiring about petrol and CNG models of two- and four-wheelers began leaning towards EVs. This momentum continued in April as well, and the share of EV sales has only increased.
EV Sales Surge in Gujarat
According to data from the Union Ministry of Road Transport and Highways, the share of EVs in total two-wheeler sales was 4.3% in 2025-26 and nearly 21% in April-May this year. EV passenger car sales were 3.8% and 6.1% respectively during the same period.
Government Incentives and Consumer Behavior
Doing the groundwork earlier were state and central incentives that had steadily brought EV prices closer to conventional alternatives, making the switch financially viable for Gujarat's cost-conscious buyers.
"Government subsidies through the PM E-DRIVE scheme remain a key support for two-wheelers. They continue to make electric two-wheelers more affordable until July 2026, boosting consumer demand and manufacturer confidence. This, coupled with the fear of rise in petrol prices and the earlier rumours of fuel shortage amidst the ongoing geopolitical conflict between Iran, Israel, and the US, further accelerated electric two-wheeler demand. This is also reflected in the sales," said Pranav Shah, chairperson of the Federation of Automobile Dealers' Association (FADA) Gujarat.
Car Buyers Focus on Long-Term Savings
However, for many car buyers, the switch is purely savings-oriented. "EVs are often bought as the second family cars. Over time, EV technology has improved, with greater reliability and faster charging. The recent rumours of a fuel shortage or rise in their prices was a key trigger for car buyers to turn to EVs to safeguard their mobility. Even concerns around price have faded as people look at long-term cost of ownership," Shah further added.
Strong Demand for Passenger Cars
In Gujarat, a total of 35,452 passenger cars were sold in April this year, a growth of 21% year-on-year against 29,175 units in the last corresponding period. The growth in passenger car sales has outpaced the pan-India sale of 12%.
"Gujarat's appetite for cars remains strong. The demand is real and broad-based — from entry-level SUVs to premium models. The waiting period for premium vehicles like the Fortuner and HyCross stretches to four to six months, which indicates high demand even in the premium segment priced above Rs 30 lakh. The sub-4 metre compact SUV segment is the hottest right now with fierce competition, plenty of choice, and buyers clearly have the upper hand. The market may be shaky in patches due to stock market sentiment and longer decision cycles, but it is certainly not negative. People are buying," said Jigar Vyas, CEO of a city-based car dealership.
