Cleaner-Fuel Alternatives Surpass Petrol in India's Passenger Vehicle Sales

CNG, hybrids and EVs together accounted for 42% of India’s passenger vehicle sales in August, surpassing petrol’s 41% share for the first time.

India’s passenger vehicle market is reportedly seeing a notable shift in consumer preference away from petrol, with CNG, hybrid and electric vehicles together accounting for 42% of sales in August 2026. For the first time, the combined share of these cleaner-fuel alternatives surpassed petrol, whose share fell to a record low of 41 per cent in August, compared with 46 per cent a year earlier, according to report by Equirus Securities, cited by ANI.

CNG, meanwhile, rose to a record-high 25 per cent, up from 21% in August 2025. The shift came as overall passenger vehicle retail sales grew 16 per cent year-on-year in August, helped by improved affordability following GST rate cuts. Electric vehicles also continued to gain ground. EV sales jumped 52% year-on-year to 30,700 units during the month, taking their penetration to 7.7 per cent, compared with 5.9 per cent a year earlier. However, the figure was slightly lower than the 8.1 per cent penetration recorded in July 2026.

“Buyer hesitation around the E20 transition appears to have supported the shift towards CNG, hybrids and EVs,” Equirus Securities said in its report.

Among EV manufacturers, Tata Motors’ share recovered to around 43 per cent in August, its highest level since December 2025, compared with 42 per cent in July and 41 per cent a year earlier. The report attributed the recovery to Tata’s broad EV portfolio and the recent launch of the Tiago EV. JSW MG Motor, meanwhile, saw its EV market share fall sharply to around 15 per cent in August from 28 per cent a year earlier amid intensifying competition. Mahindra & Mahindra’s share also slipped to around 21 per cent from 23 per cent in July. Maruti Suzuki, which has recently entered the EV segment, captured around 5 per cent of the electric car market.

Delhi emerged as the country’s leading market for electric cars in August, although fleet registrations boosted the headline figure. “Regionally, Delhi recorded the highest electric car penetration at ~19 per cent in Aug’26, although this was inflated by fleet registrations,” the report said. Excluding VinFast-supplied taxi fleet registrations, the report estimated Delhi’s underlying EV penetration at around 12-14 per cent, still significantly above the national level of 7.7 per cent.