CNG, hybrid and EVs overtake petrol as India’s car buyers embrace cleaner fuels
India's passenger vehicle market is shifting towards cleaner fuels, with CNG, hybrid, and electric vehicles representing 42% of sales in August 2026. Petrol's share dropped to a record low of 41%, supported by improved affordability from recent GST cuts.
India's car buyers are increasingly opting for cleaner-fuel options such as CNG, hybrid, and electric vehicles, according to a report by Equirus Securities. In August, CNG, hybrid, and EVs accounted for 42% of passenger vehicle retail sales, surpassing petrol for the first time. The report attributes this shift to improved affordability following GST rate cuts, which has led to a decline in petrol's share to a record low of 41%, while CNG rose to 25%.
Electric car sales also saw a significant increase of 52% year-on-year, accounting for 7.7% of total passenger vehicle sales.
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