CNG, Hybrids & EVs Overtake Petrol Car Retail for First Time
CNG/LPG accounted for 25.28 per cent of car retail in August, while hybrids had a share of 9.04 per cent and EVs 7.63 per cent. Diesel vehicles made up the remaining 17.21 per cent.
Pune: Alternative fuel passenger vehicles combined (CNG, hybrids, and electric vehicles) surpassed standalone petrol car sales for the first time in India's history in August 2026, capturing a 41.95 per cent market share compared to petrol's 40.85 per cent, the Federation of Automobile Dealers Associations or Fada said on Monday.
However, petrol remained the largest individual fuel category.
CNG/LPG accounted for 25.28 per cent of car retail in August, while hybrids had a share of 9.04 per cent and EVs 7.63 per cent. Diesel vehicles made up the remaining 17.21 per cent.
The fuel shift occurred rapidly in the car market in India.
In August 2025, alternative fuels had a combined share of 35.26 per cent, compared with petrol/ethanol's 46.37 per cent. Petrol was, therefore, ahead by 11.11 percentage points.
The gap narrowed considerably by July 2026, when alternative fuels accounted for 40.59 per cent of the market against petrol's 41.68 per cent. In August, alternative fuels moved ahead by 1.10 percentage points.
CNG/LPG made the biggest contribution to the year-on-year change, with its share rising by 3.81 percentage points. EV share increased by 1.80 percentage points, while the share of hybrids grew by 1.08 percentage points. In comparison, the share of petrol/ethanol vehicles declined by 5.52 percentage points.
"For the first time in India's history, alternative fuels -- CNG, hybrid and electric combined -- overtook petrol in the car market, at 41.95 per cent against petrol's 40.85 per cent," FADA President Sai Giridhar said.
Dealers attributed the shift to the lower running costs by alternative-fuel vehicles and continued consumer concerns surrounding the transition to E20 petrol.
The car retail market rose 16.14 per cent year-on-year to 4.02 lakh units, marking the first time registrations crossed 4 lakh units in August.
Fada said rural markets led the growth, with car registrations rising 24.99 per cent year-on-year. Urban car retail increased at a slower pace of 10.93 per cent.
Total vehicle retail rose 17.51 per cent year-on-year to 24.23 lakh units.
FADA cautioned that part of the strong annual growth came from a weak base in August 2025, when some customers had postponed purchases while waiting for the GST rate reduction.
