Cleaner fuels overtake petrol in India's passenger vehicle sales for first time

India's passenger vehicle (PV) market witnessed a historic shift in August as cleaner-fuel vehicles—CNG, hybrids, and electric cars—collectively outsold petrol-powered cars for the first time. According to data from Equirus Securities, these alternatives accounted for 42% of total PV retail sales during the month, edging past petrol's share, which dropped to a record low of 41%.

Overall PV retail sales grew 16% year-on-year in August, supported by improved affordability following recent GST rate cuts. Petrol's share fell from 46% a year earlier, while CNG climbed to an all-time high of 25%, up from 21% in August 2025. The report also noted that buyer hesitation around the E20 fuel transition appears to have accelerated the move towards CNG, hybrids, and EVs.

Electric vehicle (EV) sales rose 52% year-on-year to 30,700 units, pushing EV penetration to 7.7% of the PV market, up from 5.9% a year ago, though slightly lower than July's 8.1%. Tata Motors led the EV segment with a share of around 43%, its highest since December 2025, helped by its broad portfolio and the recent Tiago EV launch. JSW MG Motor's EV share fell to about 15% from 28% a year earlier amid intensifying competition, while Mahindra & Mahindra's share eased to 21% from 23% in July. Maruti Suzuki, a new entrant, captured roughly 5% of the EV market.

Regionally, Delhi recorded the highest EV penetration at about 19%, though this was inflated by fleet registrations. Excluding the VinFast-supplied taxi fleet, underlying penetration is estimated at 12-14%, still well above the national average of 7.7%.