CNG, hybrid, EVs outsell petrol cars for 1st time
What's the story
India's passenger vehicle market is witnessing a major shift toward cleaner fuels. According to a report by Equirus Securities, CNG, hybrid and electric vehicles together accounted for 42% of all passenger vehicle sales in August. This is the first time that these alternatives have outsold petrol-powered vehicles. Petrol's market share has dropped to a record low of 41% in August.
Market dynamics
Retail sales of passenger vehicles grew by 16% YoY
The report highlights that the retail sales of passenger vehicles (PV) grew by 16% year-on-year in August 2026. This growth is largely attributed to improved affordability following GST rate cuts.
While petrol's market share has dropped to a record low of 41%, CNG vehicles have gained significant ground, capturing a record high of 25%.
This has pushed the combined market share of CNG, hybrids and EVs to an all-time high, 42%, surpassing that of petrol for the first time ever.
EV growth
EV sales spiked by 52% YoY in August
Electric car sales also witnessed a major spike, with a year-on-year increase of 52% to 30,700 units in August.
This has taken the penetration of EVs to 7.7%, up from last year's 5.9%. However, it has slightly dropped from July's peak of 8.1%.
The report notes that buyer hesitation around the E20 transition may have contributed to this shift toward CNG and hybrids as well as EVs.
Market leadership
Tata Motors's EV share recovers to around 43%
Tata Motors has seen its electric vehicle share recover to around 43% in August 2026, the highest since December 2025.
This is up from about 42% in July and 41% last year.
The recovery is attributed to the company's wide range of electric vehicles and the recent launch of its Tiago EV model.
Market challenges
JSW MG Motor's market share drops to around 15%
On the other hand, JSW MG Motor's market share has dropped to around 15% from 28% last year due to rising competition.
Mahindra & Mahindra also saw a slight drop in its market share to about 21% in August from July's 23%.
Maruti Suzuki managed to capture about 5% of the electric vehicle market after entering this segment.