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[BUSINESS] · India · 18 sources

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India automotive market: Alternative fuels overtake petrol in August

In a historic shift for the Indian automotive market, alternative-fuel passenger vehicles—comprising CNG, hybrid, and electric models—collectively outsold petrol-powered vehicles in August 2026. According to data from the Federation of Automobile Dealers Associations (FADA), alternative fuels captured a 41.95% market share, narrowly edging out petrol/ethanol vehicles, which stood at 40.85%.

CNG emerged as the primary driver of this transition, accounting for 25.28% of passenger vehicle sales. Hybrids and electric vehicles (EVs) contributed 9.04% and 7.63%, respectively. The shift is attributed to rising fuel costs and consumer concerns regarding the transition to E20 ethanol-blended petrol.

Overall automobile retail registrations reached a record high for the month of August, totaling 2,423,201 units, a 17.51% increase year-on-year. This growth was significantly bolstered by strong demand in rural India, which outpaced urban demand across all vehicle categories. The electric vehicle segment specifically saw a 52.9% year-on-year surge in retail sales, reaching 298,448 units, marking its strongest August performance to date.

Entities

Federation of Automobile Dealers Associations · Honda · Hyundai Motor Company · India · Maruti Suzuki India · Sai Giridhar · Tata Motors

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