Alternate Fuels Surpass Petrol in Passenger Car Sales
India’s passenger vehicle market has reached a pivotal moment as alternative powertrains have surpassed petrol-powered cars for the first time. In August, CNG, hybrid, and electric vehicles collectively accounted for 41.9% of retail sales, compared to petrol’s 40.8%, according to the Federation of Automobile Dealers Associations (FADA). This shift reflects changing consumer preferences regarding fuel costs and technology.
CNG Emerges as Leading Alternative
CNG has emerged as the most significant alternative to petrol, capturing a 25.2% share of the market. Hybrids followed with a 9% share, while electric vehicles (EVs) accounted for 7.6%. A year ago, petrol led the alternative fuel segment by nearly 11 percentage points. Diesel vehicles held a 17.2% share in retail sales. The transition is driven by various factors, including lower running costs for CNG and increasing interest in hybrids among consumers who prefer better fuel efficiency without relying on charging infrastructure.
FADA noted that concerns over the E20 fuel transition are also pushing buyers toward CNG, hybrids, and EVs. Despite this shift, petrol remains the largest single fuel type in the market. Maruti Suzuki leads the CNG segment with approximately 71% market share, while Tata Motors dominates the electric passenger vehicle space with around 43%.
Growth in Electric Two-Wheelers and Three-Wheelers
The trend toward alternative fuels is evident beyond passenger cars. In the two-wheeler segment, EV penetration rose to 10.7% in August, up from 7.7% a year earlier, marking the first time it crossed the 10% threshold in a non-festive month. This indicates that electric scooters are becoming more mainstream among commuters.
Three-wheelers have made even more significant strides, with EVs accounting for 65.3% of sales in August, up from 56.6% the previous year. Meanwhile, the share of electric commercial vehicles more than doubled to an all-time high of 5.2%, up from 2.1%. This suggests that electrification is moving beyond pilot projects into actual fleet purchases. In total, EV retail sales reached 2.98 lakh units in August, reflecting a 52.9% increase year-on-year.
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