Alternative fuels overtook petrol in India’s PV market for the first time in August, marking a notable shift in consumer vehicle preferences. According to data from the Federation of Automobile Dealers Associations (FADA), CNG, hybrid and electric vehicles together accounted for 41.95% of PV retail sales, compared with 40.85% for petrol and ethanol.
Key Highlights
- Alternative fuels captured 41.95% of India’s passenger vehicle retail market, surpassing petrol in August.
- CNG led alternative fuels, while Tata Motors dominated electric vehicle registrations with a 42.8% share.
The shift highlights growing consumer interest in vehicles offering lower running costs. While petrol remained the largest individual fuel category, its lead over the combined alternative-fuel segment disappeared during August.
CNG Leads Alternative-Fuel Vehicle Sales
CNG continued to be the biggest share in the alternative-fuel passenger vehicle market, accounting for 25.28% of the PV retail sales in India. Hybrid accounted for 9.04% followed by electric vehicles (EVs) at 7.63%. Diesel cars, on the other hand, accounted for 17.21% of sales.
The mix change suggests that the shift from traditional petrol-driven cars is occurring in India not just due to EVs, but because of several powertrain technologies. CNG and Hybrids combined contributed 34.32% of PV retail sale and EVs 7.63%.
Maruti Leads CNG, Tata Tops Electric Vehicles
The factory-fitted CNG passenger car segment was led by Maruti Suzuki with its share of around 71%. Tata Motors came in with about 17% and Hyundai with almost 9%.
The EV market was another competitive environment. Tata Motors continued to dominate the August EV registrations with 12,983 units, comprising 42.8% of total EV sale in the Electric Passenger Vehicle segment. Mahindra sold 6,367 units with a 21% market share while JSW MG Motor India sold a total of 4,568 units, accounting for 15.1% of the market.
Petrol Share Falls as Alternative Fuels Gain Ground
During August 2025, petrol and ethanol contributed 46.37% to PV retail sales. During the same period, CNG/LPG held a 21.47% share, hybrids 7.96% and EVs 5.83%.
FADA President Sai Giridhar said, "The development marked a structural shift in the passenger vehicle market of India as the CNG, hybrid and electric vehicles had already surpassed petrol in the month of August." He also pointed to the sharp reduction in petrol’s lead compared with the previous year.
Also Read: Passenger Vehicle Sales Surge 36.4% YoY to 4.5 Lakh Units in August
Running Costs Drive Changing Consumer Preferences
The evolving fuel mix comes as buyers increasingly consider vehicle ownership costs alongside upfront prices. Dealers attributed the growing preference for CNG, hybrid and electric vehicles to running-cost economics and continued consumer hesitation surrounding the E20 transition.
India’s overall passenger vehicle sales also recorded strong growth in August, with retail sales rising 16.14% year-on-year to 4,02,398 units. Rural PV retail increased 24.99%, significantly outpacing the 10.93% growth recorded in urban markets.
With the festive season now underway, September to November will be crucial in determining whether August’s fuel-mix crossover signals a sustained shift in Indian car-buying preferences.
