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Alternative-Fuel Vehicles Overtake Petrol in India’s Passenger Car Sales
Indian car buyers are choosing more vehicles that do not rely only on petrol.
In August, electric cars, hybrids, and CNG or LPG cars together sold more than petrol and ethanol cars.
CNG cars made up the biggest part of this group.
These vehicles can cost less to run, especially when petrol prices rise.
More car companies now sell factory-fitted CNG, hybrid, and electric models.
Refuelling and charging networks are also expanding.
CNG is growing faster than electric cars because it is easier for many families to use with today’s infrastructure.
Maruti Suzuki, Tata Motors, Toyota, Hyundai, and Mahindra are offering different types of powertrains.
Experts expect alternative-fuel vehicles to keep gaining market share.
CNG, LPG, hybrids, and EVs together captured 41.95% of India’s passenger-vehicle retail sales in August, exceeding petrol and ethanol vehicles at 40.85%.
CNG and LPG accounted for 25.28% of sales, followed by hybrids at 9.04% and EVs at 7.63%; diesel made up 17.21%.
Alternative-fuel vehicles sold about 1.7 lakh units in August, up 38% from August 2025, while overall passenger-vehicle sales grew 16%.
Lower ownership costs, rising petrol prices, wider model availability, and expanding refuelling and charging infrastructure are supporting the shift.
CNG is leading because it offers lower running costs and uses an established refuelling network, while automakers are expanding multi-powertrain strategies.
- Who
- Indian passenger-vehicle buyers, automakers, dealers, and industry analysts are involved.
- What
- Alternative-fuel vehicles overtook petrol and ethanol vehicles collectively in India’s August passenger-vehicle retail sales.
- Where
- Across India, with notable growth in Tamil Nadu, Delhi, and Andhra Pradesh.
- When
- The crossover occurred in August, with comparisons provided for August 2025 and August 2026.
- Why
- Buyers are responding to lower ownership costs, rising petrol prices, wider vehicle choice, and improving refuelling and charging infrastructure.
Key facts
- Alternative-fuel share
- CNG/LPG, hybrids, and EVs together accounted for 41.95% of passenger-vehicle retail sales in August.
- Petrol and ethanol share
- Petrol- and ethanol-run vehicles accounted for 40.85% of August passenger-vehicle retail sales.
- Largest alternative fuel
- CNG/LPG represented 25.28% of sales, ahead of hybrids at 9.04% and EVs at 7.63%.
- Diesel share
- Diesel vehicles accounted for 17.21% of August passenger-vehicle retail sales.
- Alternative-fuel volume
- About 1.7 lakh alternative-fuel passenger vehicles were sold in August, 38% more than in August 2025.
- State growth
- Tamil Nadu’s share of India’s alternative-fuel passenger-vehicle sales rose from 4.8% in August 2025 to 6.5% in August 2026.
- Policy target
- The government aims for EVs to constitute 30% of vehicle sales by 2030.
Quotes
Amar Jatin Seth
Vice-president at the Federation of Automobile Dealers Associations
“It signals a gradual rebalancing of the PV fuel mix, with alternative fuels likely to account for a larger share of incremental industry growth going ahead.”
financialexpress.com
“Acceptability of CNG will continue to grow and push the mix. OEMs are also pushing for more CNG models.”
financialexpress.com
Sources
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