Petrol no longer king as India's car buyers get choosy

Mumbai: Petrol is losing its dominance in India's car market as buyers become more selective, with sales of traditional petrol cars declining across major markets like Maharashtra, Haryana, Delhi, Rajasthan and Uttar Pradesh. This shift is being driven by increased interest in CNG, hybrid and electric vehicles, as well as growing concerns about E20 petrol.

Industry executives attribute this change to a combination of factors, including worries about mileage, compatibility and long-term ownership. However, carmakers emphasize that E20 alone cannot explain the decline in petrol sales, as consumers now have a wider range of alternative powertrain options. CNG is appealing to those seeking lower running costs, hybrids offer better fuel efficiency without requiring extensive charging infrastructure, while EVs are gaining traction as charging networks expand.

Diesel remains popular in certain markets and segments where range, highway driving and fuel efficiency are crucial. This transition from petrol to alternate-fuel vehicles signifies a significant change in consumer preferences, with multiple powertrain options now competing for the same customers. The scale of this shift is evident, with CNG, hybrid and electric passenger vehicles together accounting for 40.59% of the market in July, just 1.09 percentage points behind petrol's 41.68% share.

A year ago, petrol held a 13.21 percentage point lead. Car manufacturers are adapting to this evolving landscape by diversifying their offerings and exploring various technologies, rather than relying on a single powertrain.