India automotive market sees alternative fuels surpass petrol sales

In India, alternative fuel passenger vehicles have reached a significant milestone in the automotive market. According to the Federation of Automobile Dealers Associations, CNG, hybrid, and electric vehicles collectively accounted for 41.95% of passenger vehicle retail sales in August, surpassing the combined share of petrol and ethanol, which stood at 40.85%.

While petrol remains the largest individual fuel category, its market share has declined from 51.04% two years ago to 46.89% in August. The shift is characterized by market fragmentation rather than a singular transition to electric vehicles. CNG has emerged as a primary driver of this change, with its share rising from 18.72% in August 2024 to 25.28% this August. Electric vehicle sales also saw an increase, rising from 2.12% to 7.63% over the same period, while hybrid vehicle shares remained relatively stable near 9%.

Analysts suggest the trend is driven by economic considerations for different types of drivers. High-mileage users with access to reliable networks are increasingly opting for CNG to reduce running costs, while households with home charging capabilities are more likely to consider electric options.