Fuel shift gathers pace across vehicle segments as EV adoption rises

India’s automobile market is seeing a steady shift in its fuel mix, with electric vehicles (EVs) gaining ground across passenger vehicles (PVs), two-wheelers, three-wheelers and commercial vehicles (CVs), while compressed natural gas (CNG) is strengthening its position in the PV market.

 The change is most visible in PVs. Petrol/ethanol’s share of retail sales fell from 47.49 per cent in January to 40.85 per cent in August but CNG/LPG increased from 22.91 per cent to 25.28 per cent, according to analysis of monthly retail data by the Federation of Automobile Dealers Associations (Fada). 

 

  

 

  

 EV penetration more than doubled from 3.6 per cent to 7.63 per cent over the same period. By August, CNG, hybrid and EVs together accounted for 41.95 per cent of PV retail, overtaking petrol/ethanol for the first time. Fada attributed the shift partly to running-cost economics and consumer concerns around the transition to E20 fuel.

 Electric two-wheelers increased their share from 6.63 per cent in January to 10.68 per cent in August. In three-wheelers, EV penetration rose from 59.60 per cent in January to 65.30 per cent in August, while CNG/LPG’s share declined.

 Compiled by Sohini Das