Earlier whenever you went to buy a car you had the option of petrol and diesel, but nowadays the decision is not so easy. The growing demand for CNG, hybrid and electric cars has opened up new options for consumers. Car companies are also changing their strategy amid rising fuel prices and stricter pollution regulations. Now their focus is not just on launching new cars, but on providing different powertrains to suit different needs of customers in the same market.

Demand for other options has increased

This change in the market is also being seen in the statistics. According to the Federation of Automobile Dealers Association (FADA), petrol models accounted for 41% of total car sales in September 2026, compared to 47% in September 2025. On the other hand, the combined share of CNG, hybrid and electric cars has increased from 35% to 41% in a year.

European companies like Renault and Volkswagen Group are also now focusing on electric and CNG options in their upcoming models. Renault Group India CEO Stephen DeBlaise says that just introducing a new car is not enough to reach out to more consumers in India. It is also important that the car comes with the right engine option.

According to him, the limited engine options affected the sales of Renault’s new Duster. The company is now looking to increase its model and powertrain range to reach around 80% of the market share in the next few years. A year ago, Kwid, Kiger and Triber together could cover a maximum of 30% of the market.

Consumer preferences are not the same in every city

The needs of car buyers in India vary by city and region. To give you an example, CNG models account for around 40% of car sales in Mumbai. According to Stephen Deblais, not offering a CNG option in such a market means not being able to reach a large number of customers.

Earlier most people used to choose between petrol and diesel, but now CNG, hybrid and electric cars have increased the options. This is the reason why companies are gearing up to offer multiple options instead of relying on one or two engine types.

Stellantis and Volkswagen are also planning

Stellentis is also moving on the same path to increase its presence in India. The company plans to offer petrol-diesel based engines, hybrid and battery electric options in cars and minivans across the A to D segment. According to Shailesh Hazela, CEO and Managing Director of Stellentis India, the company will use its global portfolio to offer more options to Indian consumers. The company is gearing up to bring seven new models and five major updates. The first of these launches will take place in the second quarter of 2027.

At the same time, Skoda-led Volkswagen Group in India is also exploring the possibilities of CNG and flex-fuel cars. One of the reasons is the tightening of emission regulations.

Mahindra and Toyota are also increasing the options

Mahindra & Mahindra already sells petrol, diesel and electric SUVs. Last week, the company entered the factory-fitted CNG segment by launching the XUV 3XO ZNG. The company is also working on a platform through which different energy options can be offered on a single basis.

According to Toyota executive Sabari Manohar, the company is pursuing a strategy of working together on various technologies. He said that in India economic condition, roads and geography are not same in every state. For this reason, the same type of car cannot be successful everywhere. According to Toyota, demand for CNG is increasing where it is easily available.

Automatic transmission in CNG models

Based on customer feedback, the company also introduced an automatic transmission in its CNG models. The company has sold more than 3 lakh hybrid vehicles so far. Tata Motors and Maruti Suzuki are already leading the way in offering multiple powertrain options. Now other companies are also moving in the same direction. It is clear that in the future, when buying a car, not only the model and price, but also the cost of fuel, usage and options available in your area will play an important role.

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