India’s Car Buyers Transition from Petrol as CNG, Hybrid, and EVs Capture Over 42% of Sales Share, Report Reveals
India’s passenger vehicle market is experiencing a significant shift, with CNG, hybrid, and electric vehicles (EVs) collectively accounting for 42% of sales in August 2026. This marks the first time these cleaner-fuel alternatives have surpassed petrol, which saw its market share drop to a record low of 41%. A report by Equirus Securities, cited by ANI, indicates that petrol’s share fell from 46% a year earlier, while CNG sales rose to a record-high 25%, up from 21% in August 2025.
The overall passenger vehicle retail sales grew by 16% year-on-year in August, driven by improved affordability following GST rate cuts. Electric vehicle sales surged by 52% year-on-year, reaching 30,700 units, which increased their market penetration to 7.7%, compared to 5.9% a year earlier. However, this figure was slightly lower than the 8.1% penetration recorded in July 2026. Equirus Securities noted that buyer hesitation regarding the E20 fuel transition has contributed to the shift towards CNG, hybrids, and EVs.
Among EV manufacturers, Tata Motors regained a market share of approximately 43% in August, its highest since December 2025, up from 42% in July and 41% a year earlier. This recovery is attributed to Tata’s extensive EV portfolio and the recent launch of the Tiago EV. In contrast, JSW MG Motor’s market share plummeted to around 15% in August from 28% a year earlier, amid increasing competition. Mahindra & Mahindra also saw a decline, with its share slipping to about 21% from 23% in July. Maruti Suzuki, which has recently entered the EV market, captured around 5% of the electric car segment.
Delhi emerged as the leading market for electric cars in August, although the figures were boosted by fleet registrations. The report indicated that Delhi recorded the highest electric car penetration at approximately 19% in August 2026, although this was inflated by fleet registrations. Excluding VinFast-supplied taxi fleet registrations, the underlying EV penetration in Delhi is estimated to be around 12-14%, significantly higher than the national average of 7.7%.
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