Changing Trend in the Car Market

India’s passenger vehicle market is witnessing a major shift as CNG, hybrid and electric vehicles (EVs) gain ground over petrol cars. According to an Equirus Securities report, CNG, hybrid and EVs together accounted for 42% of retail passenger vehicle sales in August 2026, while petrol vehicles fell to 41%. Petrol’s share has dropped from 46% during the same month last year, marking a record low. CNG vehicles, meanwhile, rose from 21% to 25%. Maruti Suzuki led the CNG segment with a 71% share, followed by Tata Motors at 17% and Hyundai at 9%. Overall vehicle retail sales grew 16% to around 4.01 lakh units, helped by improved purchasing power following GST rate cuts.

EVs also recorded strong growth, with sales rising 52% year-on-year to 30,700 units. Their market penetration increased from 5.9% to 7.7%, although it remained slightly below July’s record 8.1%. Tata Motors dominated the EV segment with a 43% share, while JSW MG Motor’s share declined from 28% to 15%. Experts attribute the changing consumer preference to rising fuel prices and concerns over E20 ethanol-blended petrol. The latest figures indicate that alternative-fuel vehicles are steadily becoming a major force in India’s passenger vehicle market.