Petrol dethroned as alt fuels lead India’s car market
India's auto retail market experienced its largest August on record in 2026, with total vehicle sales increasing by 17.51% year-on-year to 24,23,201 units. For the first time in the country's history, alternative fuels such as CNG, hybrids, and electric vehicles surpassed petrol in passenger vehicle sales, accounting for 41.95% of retail sales, compared to 40.85% for petrol.
This shift in fuel preferences marks a significant change from just over a year ago when petrol had a nearly 11 percentage point lead over alternative fuels. Rural markets outperformed urban markets across all vehicle categories, with rural retail sales growing by 19.79% year-on-year, compared to 15.17% growth in urban markets. Passenger vehicle sales in rural markets rose by 24.99% year-on-year, more than double the 10.93% growth in urban markets.
Tractor sales, however, remained an exception to the broader strength in auto retail, with the segment rising by only 0.84% year-on-year, falling 25.03% from the previous month.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
