Rumours of fuel shortages in Gujarat during the peak of the West Asia crisis in March significantly shifted consumer preference towards electric vehicles. Buyers who initially visited showrooms for petrol and compressed natural gas models increasingly opted for electric options, a trend that continued into April. As a result, the share of electric vehicles in total two-wheeler sales rose sharply to nearly 21 percent in April and May, compared to 4.3 percent in the previous financial year. Electric passenger car sales also increased during the same period.

Government incentives from both the state and central authorities played a key role in supporting this transition by narrowing the price gap between electric and conventional vehicles. Subsidies for electric two-wheelers, available until July 2026, have improved affordability and boosted consumer confidence. Concerns about rising fuel prices and supply disruptions further accelerated demand, particularly among cost-conscious buyers.

Passenger car sales in Gujarat grew 21 percent year-on-year in April, outpacing national growth. Demand remains strong across segments, from entry-level models to premium vehicles, with extended waiting periods for high-end cars reflecting sustained buyer interest despite market uncertainties.