Gujarat’s luxury car market has shifted into a higher gear, registrations data shows. Sales touched a five-year high in 2025, rising well above pre-Covid numbers. Data from the Union Ministry of Road Transport and Highways (MoRTH) shows that in 2025, around 4,631 luxury cars were registered, about 7 per cent higher from 4,333 luxury in 2024.
Sales surpassed pre-Covid peak of 3,426 units in 2019 and marked a recovery from the pandemic-impacted period, when sales slumped to 2,303 units in 2020 and 2,478 units in 2021 amid lockdowns, supply disruptions and deferred big-ticket spending. The 2025 revival indicates rising appetite for luxury and increasing disposable incomes among people of Gujarat where luxury cars now span a broad price band, from around ₹45 lakh for entry-level premium SUVs and saloons to over ₹2.5 crore for top-tier luxury models in Ahmedabad ex-showroom terms.
Industry experts say the growth is driven by strong demand for luxury SUVs, which now account for the bulk of premium car registrations in the state.
Pranav Shah, chairperson, Federation of Automobile Dealers’ Association (FADA) – Gujarat, said, “Buyers are increasingly favouring higher ground clearance, road presence and feature-rich models suited for both city and highway use, replacing the earlier dominance of luxury saloons. This shift expanded the addressable luxury market beyond traditional ultra-high net worth individuals to include first-generation entrepreneurs, professionals and family-owned business promoters. New model launches, coupled with electric car variants made available to customers, also drove sales. More models and easy finance availability further fuelled sales.”
Registrations of premium EVs rose, aided by improved charging infrastructure, corporate fleet demand and a growing willingness among affluent buyers to experiment with new technology.
Industry watchers expect momentum to carry into 2026, barring macroeconomic shocks. “New model launches, expanding EV options, continued urban wealth creation, in addition to the India-EU trade deal making certain components more affordable, are likely to keep Gujarat a fast-growing luxury auto market,” said a city dealer in Ahmedabad.>
