CNG, Hybrid, EVs Overtake Petrol Cars for First Time in India: FADA

Alternative-fuel vehicles -- CNG, hybrid and electric -- overtook petrol cars in India's passenger vehicle market for the first time in August, marking a structural shift in consumer preferences, data from the Federation of Automobile Dealers Associations showed on Monday. CNG, hybrid and electric vehicles together accounted for 41.95 per cent of passenger vehicle sales, compared with 40.85 per cent for petrol vehicles, FADA said. The shift comes a little over a year after petrol held a lead of nearly 11 per cent over alternative fuels underscoring the pace of change in India's auto market.

Furthermore, the auto sector witnessed its highest-ever August sales of 24,23,201 units, up 17.51 per cent year on year with two-wheelers, passenger vehicles, commercial vehicles, tractors and three-wheelers all setting new records, as per the FADA. Passenger vehicle retails were at 4,02,398 units, an increase of about 16 per cent year-on-year, which indicated that the first time PV has crossed the 4-lakh mark in the month. However, FADA cautioned that the year-on-year strength was partly flattered by a soft August 2025 base when buyers had deferred purchases awaiting the GST 2.0 rate cut. "The true test of the season lies in showroom conversion through September to November, not in year-on-year optics," FADA said.

FADA President Sai Giridhar said the next three months appeared optimistic with festive conversion, the monsoon's rural after-effects and inventory discipline the major monitorables into the peak season. The auto dealers' body said the near-term outlook for September was cautiously optimistic with festive demand and the alternative-fuel shift expected to support two-wheelers, while passenger vehicles enter the month with fresh launches and healthy pipelines. Moreover, commercial vehicles are expected to firm up as post-monsoon freight, infrastructure and harvest movement resume, FADA said. For September-November, 81.62 per cent of dealers expect growth, 17.09 per cent expect a flat market and 1.28 per cent expect de-growth, according to the auto industry body.

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