The state overtook Uttar Pradesh to record India’s second-highest car sales in Oct, with 41,552 units as of Oct 28, according to data from the Union ministry of road transport and highways. Ahmedabad: The festive season has put Gujarat’s car market in the fast lane.
Maharashtra led with 44,632 units, while UP recorded 38,233. Haryana, with 24,131 units, and Rajasthan, with 23,602, completed the top five. Gujarat ranked third in Oct 2025, behind Maharashtra and Uttar Pradesh.
Dealers said improved affordability, stronger demand for entry-level cars, continued interest in SUVs, and new model launches may have helped Gujarat race ahead of Uttar Pradesh. This year, it helped convert aspirational buyers and two-wheeler users into entry-level car buyers,” said Surendra Sharma, a car dealer from Ahmedabad. Its climb this year came during the peak festive buying season, when Navratri-Dussehra and Diwali traditionally put buyers in the driver’s seat and push up vehicle deliveries. “Rising demand for entry-level cars and sustained interest in SUVs were among the factors behind Gujarat’s strong October sales.
Since the GST cuts in Sept last year, demand for entry-level cars has improved.
It ranked third in cumulative car sales in 2026, with 3,44,039 units as of Oct 28. Maharashtra led with 4,75,712 units, followed by Uttar Pradesh with 4,32,591 units. Tamil Nadu ranked fourth with 2,87,643 units, while Karnataka was fifth with 2,80,705 units.
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This, along with new model introductions by companies, drove sales,” said Pranav Shah, national chairperson of FADA’s two-wheeler vertical. Gujarat’s industrial base, growing urban centres and strong road connectivity have made it a key market for automobile companies. The state’s appetite has also extended beyond conventional petrol and diesel models. “The demand for CNG variants and electric vehicles (EVs) was substantially good in Gujarat. With EV charging infrastructure improving, demand has increased considerably. The festive season may have provided the final push, with buyers bringing forward purchases to schedule deliveries around auspicious dates. The exact contribution of festive demand, new launches, improved affordability and changing fuel preferences will become clearer once final monthly data and dealer feedback are available. Gujarat is also holding firm near the top of the calendar-year sales table. Download the TOI App.