Daijiworld Media Network - New Delhi

New Delhi, Sep 5: India’s passenger vehicle market is witnessing a notable shift in consumer preference away from petrol, with CNG, hybrid and electric vehicles together accounting for 42 per cent of sales in August 2026, according to a report by Equirus Securities cited by ANI.

For the first time, the combined share of these alternative-fuel vehicles surpassed petrol, whose share fell to a record low of 41 per cent in August, compared with 46 per cent a year earlier.

CNG vehicles recorded a record-high 25 per cent share, rising from 21 per cent in August 2025. The shift came as overall passenger vehicle retail sales grew 16 per cent year-on-year during the month, supported by improved affordability following GST rate cuts.

Electric vehicles also continued to gain ground. EV sales surged 52 per cent year-on-year to 30,700 units in August, taking their market penetration to 7.7 per cent from 5.9 per cent a year earlier. However, the figure was marginally lower than the 8.1 per cent penetration recorded in July 2026.

“Buyer hesitation around the E20 transition appears to have supported the shift towards CNG, hybrids and EVs,” Equirus Securities said in its report.

Among EV manufacturers, Tata Motors recovered its market share to around 43 per cent in August, its highest level since December 2025. The company had a 42 per cent share in July and 41 per cent a year earlier. The report attributed the recovery to Tata’s broad EV portfolio and the recent launch of the Tiago EV.

JSW MG Motor, meanwhile, saw its EV market share fall sharply to around 15 per cent in August from 28 per cent a year earlier amid increasing competition.

Mahindra & Mahindra’s share also declined to around 21 per cent from 23 per cent in July. Maruti Suzuki, which recently entered the EV segment, captured around 5 per cent of the electric car market.

Delhi emerged as India’s leading market for electric cars in August, although fleet registrations contributed significantly to the headline figure. According to the report, Delhi recorded electric car penetration of around 19 per cent during the month.

Excluding taxi fleet registrations supplied by VinFast, the report estimated Delhi’s underlying EV penetration at around 12-14 per cent. Despite the adjustment, the figure remained significantly higher than the national EV penetration of 7.7 per cent.