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India's Green Mobility Boom: Clean Cars Surge Past Industry Average
6 Apr
Summary
- Clean vehicle sales doubled industry average, capturing nearly a third of the market.
- Approximately 1.34 million electric, hybrid, and CNG vehicles were sold last fiscal year.
- Buyers are motivated by lower running costs, air quality, and improving infrastructure.
Sales of electric, hybrid, and CNG-powered passenger vehicles in India have surged, growing at more than double the automobile industry average. These cleaner mobility options accounted for nearly a third of the market in the last fiscal year, with approximately 1.34 million units sold. This represents a significant 31% increase from the previous year, contrasting with the total passenger vehicle sales growth of 13%.
The growing preference for cleaner vehicles is a welcome development for India, reducing its reliance on oil and gas imports. Drivers are increasingly swayed by the economic benefits of lower running costs, coupled with growing awareness of air quality issues in urban centers. The expansion of charging and CNG supply infrastructure further supports this trend.
Industry executives anticipate this shift to cleantech will accelerate due to tightening emission regulations and geopolitical factors impacting fossil fuel supplies. Manufacturers are responding with a flood of new models. Tata Motors reported a 24% growth in its CNG segment and a 43% rise in EV sales last fiscal year. Maruti Suzuki also notes robust demand for CNG and growing acceptance of EVs.
Carmakers are planning multiple electric vehicle launches over the next three to four years. Projections indicate that EVs could constitute 13-15% of new car sales in India by the turn of the decade, up from around 4% at the end of FY26.
