The preferences of car buyers in India are slowly changing. Consumers are no longer limited to petrol and diesel, but are rapidly adopting CNG, hybrid and electric cars as well. According to data from the Federation of Automobile Dealers Association (FADA), the share of cars running on petrol and ethanol in the passenger vehicle market declined between April and September 2026. On the other hand, the share of alternative fuel vehicles has increased.

According to the data, the market share of petrol and ethanol cars was 45.95% in April, which declined to 41.27% in September. In contrast, the combined share of CNG, LPG, hybrid and electric cars increased from 36.66% in April to around 41% in September. That means now the share of both groups is almost equal.

Why has the share of petrol cars decreased?

This change did not happen suddenly. Statistics show that the share of petrol cars was 45.95% in April, 45.76% in May, 43.63% in June, 41.68% in July and 40.85% in August. In September, it registered a slight increase and reached 41.27%. However, it is 5.91 percent less than September 2025’s 47.18%.

According to Saharsh Damani, CEO of FADA, petrol car sales are not necessarily declining, but the pace of other technologies in the market is higher. He said registrations of petrol vehicles increased by around 4% in July, while the total market grew by 19%, CNG by 38% and EVs by over 80%.

According to media reports, the cost of driving is playing an important role in consumer decisions. After the rise in petrol prices, many buyers are looking for alternatives with lower running costs.

Advantages of CNG, Hybrid and EV

CNG and LPG vehicles are the largest category of alternative fuels. Their share increased from 22.62% in April to 23.11% in September. However, it reached 25.28% in August.

The share of hybrid cars also increased from 8.27 percent in April to 9.44 percent in September. A year ago in September 2025, it was 7.30%. At the same time, the share of EVs increased from 5.77% in April to 8.45% in September 2026. EV’s share was 5.74% in September 2025. In comparison, the share of diesel cars has remained stable at around 17.76% over the past 12 months.

Companies are adopting a variety of technologies

Keeping in view the changing demand, car companies are offering multiple options instead of relying on a single engine. Maruti Suzuki is also working on its electric SUV e Vitara with CNG and a robust hybrid. Tata Motors’ ATLAS platform is being designed to support four powertrains namely petrol, diesel, iCNG and EV.

Mahindra is expanding its range of electric SUVs, while diesel models also remain in its portfolio. Hyundai and Kia are also working on increasing domestic production of EVs along with increasing CNG options.

Only sales figures for the upcoming holiday season will tell if the growing share of alternative fuel vehicles is a long-term change. Currently, indications are that in the Indian car market, customers are now considering mileage, running cost and different technologies according to their needs.

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