Carmakers fuel up for India’s multi-engine future

New Delhi and Mumbai: As fuel prices surge and emission norms tighten, car manufacturers are expanding their powertrain options to cater to regional preferences and buyer concerns over running costs. European automakers Renault and Volkswagen Group are leading the way by introducing electric and CNG models alongside their traditional petrol and diesel offerings.

Petrol vehicles now constitute 41% of overall car sales in India, down from 47% in September 2025, while the combined share of CNG, hybrid, and electric vehicles has risen to 41% from 35% during the same period, according to Federation of Automobile Dealers Associations (FADA) data.

Renault Group India's CEO, Stephane Deblaise, highlighted that a limited selection of engine options has impacted sales of their new Duster model. He emphasized that expanding market coverage in India hinges on providing the right engines just as much as introducing new models. Renault aims to cover 80% of the market within a couple of years by offering a wider range of vehicles and powertrains.

Regional preferences play a significant role in shaping sales. In Mumbai, for instance, CNG accounts for about 40% of sales. Dealers warn that failing to offer CNG options means missing out on a substantial portion of the market. Before the pandemic, buyers predominantly opted for diesel and petrol engines, but the current landscape now includes CNG, hybrid, and electric vehicles as viable choices. Renault's CEO stressed that a one-size-fits-all approach with just one or two engine types is unsustainable for success.

Stellantis, another European manufacturer, is pursuing a similar strategy, planning to offer internal combustion engine vehicles, hybrids, and battery electric vehicles across all vehicle segments. The company aims to leverage its extensive global product portfolio to expand its presence in India. Skoda-led Volkswagen Group is also exploring the introduction of CNG and flex-fuel vehicles, driven by tighter emission regulations and the need to diversify their powertrain mix.

Mahindra & Mahindra, already offering petrol, diesel, and electric SUVs, has recently entered the factory-fitted CNG market with the launch of the XUV 3XO ZNG. The company plans to incorporate multi-energy platforms to provide more powertrain options to customers.

Toyota Kirloskar, in collaboration with Toyota, is adopting a multi-pathway technology strategy, focusing on hybrids, plug-in hybrids, and other emerging technologies. India's diverse market conditions and terrain across different states have prompted Toyota to introduce automatic transmissions in their CNG models, aiming to cater to customer preferences. The automaker has sold over 300,000 hybrid vehicles in the country.

Tata Motors and Maruti Suzuki were among the early adopters of multiple powertrain options in the Indian market.