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India's Car Market Shifts As CNG, Hybrids And EVs Overtake Petrol: Report

CNG, hybrid and electric vehicles accounted for 42% of India's passenger vehicle sales in August, overtaking petrol as consumer preferences shifted.

India's Car Market Shifts As CNG, Hybrids And EVs Overtake Petrol: Report
Petrol's share hit a record low as CNG, hybrid and electric vehicles gained ground in India.
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  • India's passenger-vehicle sales saw CNG, hybrid, and electric vehicles reach 42% market share in August
  • Petrol vehicle sales dropped to 41%, the lowest share recorded, down from 46% last year
  • Electric vehicle sales rose 52% year-on-year, reaching 7.7% penetration of the market in August

India's passenger-vehicle market witnessed a major shift towards alternative powertrains in August, with CNG, hybrid and electric vehicles collectively accounting for 42% of retail sales and overtaking petrol-powered cars for the first time.

Petrol's share fell to a record low of 41%, down from 46% a year earlier, while CNG's share rose to a record 25%, compared with 21% in August last year. Diesel vehicles accounted for around 17% of passenger-vehicle sales, ANI cited a report by Equirus Securities.

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Overall passenger-vehicle retail sales increased 16% year-on-year to around 4.01 lakh units in August, indicating continued demand even as consumer preferences shifted across fuel types.

Electric vehicles also recorded strong growth. Electric-car sales rose 52% year-on-year to around 30,700 units, taking EV penetration to 7.7%, compared with 5.9% a year earlier. While this was below July's record 8.1%, August was still the third-best month on record for electric-car sales.

CNG continued to be a major driver of the broader shift. Maruti Suzuki maintained its dominance in the CNG passenger-vehicle segment with around 71% market share, followed by Tata Motors at 17% and Hyundai at 9%.

In the electric-car market, Tata Motors recovered its share to around 43%, its strongest level since December 2025. Delhi recorded the highest EV penetration in the country at around 19%, although registrations linked to an all-electric taxi fleet contributed to the figure. Underlying penetration was estimated at 12-14%, Autocar Pro reported.

Analysts have pointed to several factors behind the changing preferences, including consumer concerns around the transition to E20 fuel, improving charging infrastructure and the availability of new electric and hybrid models, according to the report.

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The shift is also visible beyond passenger cars. Electric three-wheelers crossed 65% penetration, while electric buses recorded their highest-ever monthly sales in August.

The August figures underline how India's automobile market is gradually diversifying away from its traditional dependence on petrol, with CNG, hybrid and electric vehicles accounting for an increasingly larger share of consumer demand.

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