Why petrol car sales in India are going down
What's the story
India's passenger vehicle market has seen a major shift in fuel preferences, with petrol/ethanol losing ground in July. The change comes amid growing consumer concerns over the transition to E20 fuel. According to data from the Federation of Automobile Dealers Associations (FADA), petrol/ethanol vehicles accounted for 41.68% of retail sales last month, down from 43.15% in June and significantly lower than the 47.62% recorded in July last year.
Diesel rise
Diesel vehicles gaining ground
Despite the overall decline in petrol/ethanol sales, diesel vehicles have seen an increase in their market share.
In July, diesel vehicles accounted for 17.73% of retail sales, up from 16.32% in June but still lower than the 17.97% recorded a year earlier.
This increase comes as the overall passenger vehicle market remained strong with retail sales at 4,16,555 units last month, a year-on-year increase of 19.13%.
Powertrain shift
Alternative powertrains closing in on petrol/ethanol
The FADA data also highlights a growing preference for alternative powertrains such as CNG, hybrids, and electric vehicles (EVs).
Together, these three categories accounted for 40.59% of the market share in July.
This is just slightly behind petrol/ethanol's share but shows a significant shift from last year when there was a 13.21% gap between petrol and these alternative fuels.
EV surge
Record high EV sales in July
The growing popularity of alternative powertrains is also reflected in the record high sales of electric vehicles (EVs).
Total EV retail sales reached a staggering 3,27,901 units in July alone.
This pushed the penetration of EVs across India's automobile market to around 12.7%, up from 9.6% in July last year.