CNG, hybrid and electric cars together took 41.95% of the passenger vehicle market in August 2026.
Alternative-fuel vehicles overtook petrol and ethanol-powered cars in India for the first time in August 2026. The shift was recorded by the Federation of Automobile Dealers Associations (FADA), as buyers moved towards CNG, hybrid and electric cars.
FADA data showed that petrol and ethanol-powered cars held 40.85% of the market in August. Their share stood at 41.68% in July and 46.37% in August 2025. The decline shows how quickly the mix of passenger vehicle sales is changing.
At the same time, alternative-fuel vehicles reached a 41.95% share in August. Their share was 40.59% in July and 35.26% in August 2025. This means the group moved ahead of petrol cars for the first time.
CNG Cars Lead the Alternative-Fuel Market
CNG cars made up the largest part of the alternative-fuel market in August. They accounted for 25.28% of passenger vehicle sales. Hybrids followed with a 9.04% share, while electric vehicles held 7.63%.
The rise in electric vehicle sales was also notable. Electric passenger vehicles increased their market share from 5.8% in August 2025 to 7.63% in August 2026. The data points to a wider change in buying choices across India’s passenger vehicle market.
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The figures also show that India’s shift away from petrol is not being driven by electric cars alone. CNG vehicles remain the biggest alternative-fuel choice, while hybrids also hold a significant share.
Tata Motors Leads India’s Electric Car Market
The electric passenger vehicle market remains concentrated among a small number of carmakers. Tata Motors held nearly 43% of the electric passenger vehicle market in August 2026.
Mahindra & Mahindra ranked second with a 21.1% share. JSW MG Motor and VinFast Auto followed in third and fourth place. Maruti Suzuki, India’s largest carmaker, ranked fifth in the electric passenger vehicle segment.
The figures show that Tata Motors had a clear lead in electric passenger vehicles. However, the wider alternative-fuel market was driven mainly by CNG cars, which held a much larger share than EVs.
India’s EV Market Records a Strong August
FADA President Sai Giridhar said August 2026 was the biggest-ever August for electric mobility in India. He said EV retail sales across categories reached 2,98,448 units during the month.
According to Giridhar, EV sales increased 52.9% year-on-year. Overall EV penetration also rose to 12.3%, compared with 9.5% a year earlier. Giridhar also said all four EV categories set a new August record. He noted that no EV category failed to set a fresh August record.
The growth in EVs is part of a larger change in India’s vehicle market. Buyers are not moving only towards electric cars. CNG and hybrid vehicles are also gaining a larger share of sales.
What the August Data Means for Indian Car Buyers
The latest FADA figures show that petrol-powered cars no longer hold the largest combined share of India’s passenger vehicle market. Alternative-fuel vehicles moved ahead in August, led by CNG cars.
Electric vehicles are also gaining ground within this changing market. Their passenger vehicle share rose by 1.83 percentage points from August 2025 to August 2026.
Still, the data shows that India’s move away from petrol is not being led by EVs alone. CNG vehicles remain the largest alternative-fuel choice, while hybrids also hold a significant share.
The August figures provide a clear snapshot of changing passenger vehicle demand in India. Future sales data will show whether this shift continues in the months ahead.
