CNG, Hybrids and EVs Reshape India’s Passenger Vehicle Market as Petrol Loses Ground
India’s passenger vehicle market is moving towards a more diverse powertrain mix, with CNG, hybrids and electric vehicles (EVs) collectively overtaking petrol in retail sales for the first time in August 2026.
According to data cited by Moneycontrol, CNG, hybrids and EVs together accounted for 41.95% of passenger vehicle retail sales in August, compared with 40.85% for petrol. CNG alone held a 25.28% share, while diesel accounted for 17.21%, hybrids 9.04% and EVs 7.63%. The crossover was narrow, but marks a significant change in the market.
Petrol’s share has been declining steadily. It stood at 50.82% in FY25 and fell to 47.48% in FY26, while the combined share of CNG, hybrids and EVs rose from 30.94% to 34.45% over the same period.
CNG is currently the biggest contributor to the shift, helped by lower running costs, an established refuelling network and wider availability of factory-fitted models. EVs, meanwhile, continue to record strong growth from a smaller base. EV passenger vehicle retail sales increased 83.63% in FY26, while August 2026 registrations rose 51.89% year on year.
Hybrids are also gaining ground, although their higher prices and limited model availability remain constraints.
Industry analysts expect India to remain a multi-powertrain market over the next three to five years, rather than follow a straightforward petrol-to-EV transition. Petrol’s share could fall towards one-third of the market as CNG remains important and hybrids and EVs continue to expand.
Tyre Times’ View
India’s multi-powertrain transition will also reshape the tyre market. Different powertrains bring different vehicle characteristics, including changes in weight, torque delivery, rolling resistance and operating patterns.
CNG vehicles, for example, carry additional equipment that can affect vehicle weight, while EVs are generally heavier and deliver instant torque. These factors can influence tyre wear and place greater emphasis on load capacity, durability and low rolling resistance.
For tyre manufacturers, the opportunity is therefore not simply about developing tyres for EVs. The market is likely to demand a broader range of products suited to different powertrains and applications.
The bigger takeaway is that India’s automotive transition is becoming less about choosing a single winning technology and more about adapting to several technologies developing simultaneously. For the tyre industry, that means understanding how each powertrain changes tyre performance requirements and developing products accordingly.
