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India’s Alternative-Fuel Vehicles Surpass Petrol Cars; Tata Leads EVs
Indian car buyers are choosing fewer petrol cars than before.
In August 2026, cars using other fuels together became more popular than petrol and ethanol cars.
CNG cars were the most common alternative, followed by hybrid cars and electric cars.
Electric cars made up 7.63% of the passenger-car market.
Tata Motors sold the largest share of electric passenger vehicles.
Mahindra & Mahindra was second.
Overall EV sales across vehicle categories reached 298,448 in August 2026.
The Federation of Automobile Dealers Associations said this was the biggest August ever for electric mobility in India.
Alternative-fuel vehicles captured 41.95% of India’s car market in August 2026, surpassing petrol and ethanol-powered cars at 40.85%.
CNG cars led alternative-fuel vehicles with a 25.28% share, followed by hybrids at 9.04% and EVs at 7.63%.
Electric passenger vehicles increased their market share from 5.8% in August 2025 to 7.63% in August 2026.
Tata Motors led India’s electric passenger-vehicle market with nearly 43% share, followed by Mahindra & Mahindra at 21.1%.
FADA said total EV retail sales reached 298,448 units in August 2026, up 52.9% year over year, with penetration rising to 12.3%.
- Who
- Indian car buyers, automakers, and the Federation of Automobile Dealers Associations; Tata Motors led the electric passenger-vehicle market.
- What
- Alternative-fuel vehicles surpassed petrol and ethanol-powered cars in market share, while EV sales reached a record August level.
- Where
- India.
- When
- August 2026, compared with August 2025 and July 2026 figures.
- Why
- The articles attribute the shift to changing consumer choices toward CNG, hybrid, and electric vehicles.
Key facts
- Alternative-fuel share
- 41.95% of the car market in August 2026
- Petrol and ethanol share
- 40.85% in August 2026
- Largest alternative-fuel segment
- CNG cars at 25.28%
- Electric passenger-vehicle share
- 7.63% in August 2026, up from 5.8% in August 2025
- EV retail sales
- 298,448 units in August 2026
- Year-on-year EV growth
- 52.9%
- Overall EV penetration
- 12.3% in August 2026, compared with 9.5% a year earlier
Quotes
Sai Giridhar
President of the Federation of Automobile Dealers Associations
“August 2026 was the biggest-ever August for electric mobility in India. EV retails across categories reached 2,98,448 units, up 52.9 per cent year-on-year, taking overall EV penetration to 12.3 per cent from 9.5 per cent a year ago。”
NDTV
“Remarkably, every one of the four EV categories set a fresh August record. There was not a single category that failed to do so.”
NDTV
Sources
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