The car market saw CNG and LPG, hybrid and electric vehicles collectively overtake petrol in August 2026 according to data from the Federation of Automobile Dealers Associations (FADA). The three categories secured a combined market share of 41.95 per cent against petrol’s 40.85 per cent. The gap narrowed in September with petrol accounting for 41.27 per cent and the other three categories reaching 41 per cent.
The figures indicate a considerable change in the fuel composition of domestic vehicle registrations in the first half of FY27. The annual figures show that electric and hybrid vehicles accounted for the largest gains in market share. EV penetration increased from 5.74 per cent in September 2025 to 8.45 per cent last month – an improvement of 2.71 percentage.
Hybrids recorded a gain of 2.14 per cent with their share climbing to 9.44 per cent from 7.30 per cent. Furthermore, CNG and LPG registrations also increased their contribution from 22.02 per cent to 23.11 per cent during the same period. The growing share of alternative powertrains has coincided with changes to the product portfolios of many leading carmakers.
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| Fuel Type | September 2025 | September 2026 | YoY Change |
|---|---|---|---|
| Petrol/Ethanol | 47.18% | 41.27% | -5.91 % |
| Diesel | 17.76% | 17.74% | -0.02 % |
| CNG/LPG | 22.02% | 23.11% | +1.09 % |
| Hybrid | 7.30% | 9.44% | +2.14 % |
| Electric | 5.74% | 8.45% | +2.71 % |
For instance, Maruti Suzuki has an extensive CNG lineup and strong hybrid models alongside its BEV programme. Tata Motors has developed its latest architecture to accommodate petrol, diesel, CNG and electric powertrains. Hyundai and Kia also offer vehicles with different propulsions and Mahindra has expanded its INGLO portfolio which has garnered over one lakh sales in a short span of time.
Petrol’s share declined by 5.91 per cent on a year-on-year basis having accounted for 47.18 per cent of total registrations in September 2025. The reduction did not necessarily translate into lower sales volumes as petrol vehicles still recorded registration growth during certain months. The opening half of this FY also reveal differences in the monthly movement of individual fuel categories.
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Electric vehicles started April 2026 with a 5.77 per cent share and reached 8.45 per cent by September while CNG and LPG peaked at 25.28 per cent in August before dropping to 23.11 per cent the following month. Hybrid penetration increased from 8.27 per cent in April to 9.44 per cent in September. However, diesel remained relatively stable – accounting for 17.74 per cent of September registrations against 17.76 per cent a year earlier.
