India's Alternative‑Fuel Cars Reach Record 40% Share of June Passenger Vehicle Sales

In June 2026, alternative‑fuel vehicles—compressed natural gas (CNG), hybrid and battery‑electric cars—accounted for a record 40.4% of passenger‑vehicle retail sales in India, according to the Federation of Automobile Dealers Associations (FADA). CNG remained the dominant option with a 24.3% share, followed by hybrids at 8.3% and electric vehicles at 7.8%. The surge was driven by a series of petrol and diesel price hikes in May, linked to rising crude costs amid the Iran‑Israel conflict, prompting buyers to seek lower running‑cost alternatives.

Overall automobile retail volume rose 22% year‑on‑year to about 2.6 million units, with passenger‑vehicle registrations climbing 29% to roughly 410,000 units. Maruti Suzuki, India’s market leader, reported a 40% jump in bookings for its CNG models. Two‑wheeler electric sales also hit a milestone, reaching a 10.6% share of that segment for the first time. Industry analysts noted the shift could be a short‑term reaction to fuel‑price volatility, but the expanding CNG product range and growing EV infrastructure suggest a lasting diversification of the market.