The domestic car market is splitting across more fuel and drivetrain choices creating room for hybrids and plug-in hybrids. Petrol accounted for 41 per cent of passenger vehicle sales in September 2026 – down from 47 per cent during the same period last year. CNG, hybrid and electric vehicles collectively reached 41 per cent in the same month – up from 35 per cent a year earlier as per FADA data.
Stellantis has already outlined a new product plan for India encompassing ICE, hybrids and all-electric vehicles across several vehicle segments. Seven all-new models and five upgrades are planned as the product assault will begin in the second quarter of 2027. The inclusion of hybrids in that roadmap points to electrified combustion powertrains becoming a more serious part of the brand’s future.
Renault has reached a similar conclusion from a different starting point. The French brand’s success in India depends as much on engine choice as the number of cars offered. Around a year ago, Kwid, Kiger and Triber addressed only about 30 per cent of the local market. Renault now wants its vehicle and powertrain portfolio to reach close to 80 per cent over the next two years which requires more than petrol choices.
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Toyota provides evidence that electrified combustion technology already has substantial scale in India. The company has sold more than three lakh hybrid vehicles as the technology sit alongside CNG, electric and regular combustion options in its product planning. CNG is another major part of the equation as most of the mainstream manufacturers have jumped on the bandwagon.
Maruti Suzuki, Tata and Hyundai relish on boasting an expanded CNG portfolio already. The Korean brand’s new Pune plant will give rise to future hybrid cars. Mahindra, in particular, recently entered factory-fitted CNG race through the XUV 3XO ZNG. MG and Kia have made their intentions clear with the debut of Hector Tomahawk PHEV and locally made Sorento as well. The affordable SUV space has seen multiple new CNG launches in the last year or two. Volkswagen Group India is also evaluating CNG and flex-fuel vehicles as emission norms tighten up.
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The growing spread of fuel and drivetrain choices show that future product planning will depend far more on segment, region and infrastructure than on one universal replacement for petrol or diesel. Hybrids and plug-in hybrids could benefit from that fragmented market because they occupy the space between IC-engined powertrains and BEVs.
