Alternative fuels overtake petrol in India’s passenger vehicle market for the first time

India’s passenger vehicle market has reached a historic inflection point, with alternative fuel-powered vehicles collectively outselling petrol-powered vehicles for the first time. According to the Federation of Automobile Dealers Associations (FADA), CNG, hybrids and electric vehicles accounted for 41.95% of passenger vehicle retail sales in August 2026, compared with 40.85% for petrol/ethanol-powered vehicles.

The shift marks a dramatic change in the country’s passenger vehicle fuel mix. Just a year ago, petrol/ethanol held a lead of nearly 11 percentage points over alternative powertrains. In August 2025, consumers were still overwhelmingly inclined towards conventional petrol-powered vehicles, but the gap has now been completely erased, with alternative fuels moving ahead for the first time.

CNG was the largest contributor to the crossover, accounting for 25.28% of passenger vehicle retail sales in August. Hybrid vehicles contributed around 9%, while electric vehicles accounted for 7.63%.