Alternative-fuel car sales in India top petrol on cost, E20 concerns, dealers' body says
Sales of alternative-fuel passenger vehicles outpaced petrol-powered cars in India in August for the first time, an auto dealers’ body said on Monday, as the Middle East war raised oil prices and a public backlash against higher-ethanol-content fuel simmered. Alternative-fuel models, including compressed natural gas, hybrid and electric models, accounted for nearly 42% of passenger-vehicle sales,…
In August, sales of alternative-fuel passenger vehicles surged past petrol-powered cars in India for the first time, according to the Federation of Automobile Dealers Associations (FADA). This shift came as oil prices rose due to the Middle East conflict and as concerns mounted over the government's E20 petrol blend, which contains 20% ethanol.
Alternative-fuel models, such as compressed natural gas, hybrid, and electric vehicles, accounted for nearly 42% of passenger-vehicle sales, while petrol vehicles made up about 41%, according to FADA. Sai Giridhar, FADA vice president, stated that this trend was inevitable. The trend was driven by a wider selection of alternative-fuel models, improved electric vehicle range, and expanding charging infrastructure.
The government's move to E20 petrol aims to reduce dependence on imported crude oil, but it has sparked criticism from owners of older vehicles who worry about reduced fuel economy. India's largest carmaker, Maruti Suzuki, announced price hikes of up to 20,000 rupees for select models from September, its third increase since May.
Despite inflationary pressures and price increases, dealers remain optimistic about sales as the country enters its annual festive season, which typically sees significant purchases.
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