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EVs, CNG gain ground as India's automobile fuel mix steadily shifts

EVs gain ground across vehicle segments as petrol, diesel shares ease

By August, CNG, hybrid and electric vehicles together accounted for 41.95 per cent of PV retail, overtaking petrol/ethanol for the first time

Sohini Das Mumbai

2 min read Last Updated : Sep 22 2026 | 1:17 PM IST

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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 passenger vehicles.

Petrol/ethanol’s share of retail sales fell from 47.49 per cent in January to 40.85 per cent in August, while CNG/LPG increased from 22.91 per cent to 25.28 per cent, according to an analysis of monthly retail data shared by the Federation of Automobile Dealers Associations (FADA).

EV penetration more than doubled from 3.60 per cent to 7.63 per cent over the same period.

By August, CNG, hybrid and electric vehicles together accounted for 41.95 per cent of PV retail, overtaking petrol/ethanol for the first time.

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FADA attributed the shift partly to running-cost economics and consumer concerns around the transition to E20 fuel.

Electric two-wheelers cross 10% penetration

The electrification trend is more pronounced in two- and three-wheelers.

Electric two-wheelers increased their share from 6.63 per cent in January to 10.68 per cent in August, despite some month-to-month volatility.

FADA said August was the first non-festive month in which electric two-wheelers crossed 10 per cent penetration.

Three-wheelers are already predominantly electric

EV penetration rose from 59.60 per cent in January to 65.30 per cent in August, while CNG/LPG’s share declined over the same period.

EV share in commercial vehicles hits record

Commercial vehicles remain overwhelmingly diesel-powered, but here too the direction is changing.

Diesel’s share declined from 81.97 per cent in January to 78.77 per cent in August, while EV penetration rose from 1.92 per cent to a record 5.18 per cent.

FADA said electric commercial vehicle volumes also touched a monthly high in August.