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India's Auto Market Shifts: EVs & CNG Overtake Petrol
5 Sep
Summary
- Alternative powertrains formed 42% of August retail sales.
- Electric vehicle sales grew 52% year-on-year in August.
- CNG's market share reached a record 25% in August.
In August, India's passenger vehicle market experienced a notable transition towards alternative powertrains. For the first time, retail sales of CNG, hybrid, and electric vehicles combined constituted 42% of the market, exceeding petrol-powered car sales.
Petrol's market share declined to a record low of 41% in August, down from 46% in the previous year. Concurrently, CNG's share climbed to a new high of 25%, an increase from 21% in August of the prior year. Diesel vehicles comprised approximately 17% of sales.
Overall passenger vehicle retail sales saw a 16% year-on-year increase, reaching about 4.01 lakh units. Electric vehicle sales demonstrated robust growth, rising 52% year-on-year to approximately 30,700 units, achieving 7.7% market penetration compared to 5.9% a year earlier.
CNG vehicles were a primary driver of this market shift. Maruti Suzuki maintained a dominant 71% share in the CNG passenger vehicle segment. In the electric car market, Tata Motors regained significant market share, reaching its highest level since December 2025.
Factors contributing to these changing consumer preferences include concerns about the E20 fuel transition, enhancements in charging infrastructure, and the introduction of new electric and hybrid models. This trend extends beyond passenger cars, with electric three-wheelers exceeding 65% penetration and electric buses achieving their best monthly sales in August.
