Alternative fuels once again overtake petrol in passenger vehicle segment in October

Alternative fuel vehicles have once again edged past petrol-powered models in India's passenger vehicle market, accounting for 41.83% of retail sales in October 2026, according to FADA data.

Alternative fuel-powered passenger vehicles once again edged past petrol-powered models in India in October 2026, reversing the trend seen in September. According to retail data released by the Federation of Automobile Dealers Associations (FADA), CNG, hybrid and electric vehicles together accounted for 41.83% of passenger vehicle retail sales in October, marginally higher than the 41.60% share of petrol/ethanol-powered vehicles.

The latest figures mark a return to the trend witnessed in August, when alternative fuel vehicles collectively overtook petrol-powered models for the first time. In August, CNG, hybrid and electric vehicles accounted for 41.95% of passenger vehicle retail sales, compared with 40.85% for petrol/ethanol models. However, petrol regained a narrow lead in September, accounting for 41.27% of registrations, against the combined share of 41% for alternative fuel vehicles.

The October data shows CNG continuing to be the largest contributor among alternative fuel options, accounting for 24.59% of passenger vehicle retail sales. Hybrid vehicles held a 9.94% share, while electric vehicles accounted for 7.30%. Together, the three categories crossed the petrol/ethanol share by 0.23 percentage points.

While CNG maintained its position as the most widely adopted alternative fuel in the passenger vehicle segment, hybrids registered a notable increase in market share compared with the previous year. Their share rose from 6.96% in October 2025 to 9.94% in October 2026. CNG's share also increased from 23.20% to 24.59% during the same period.

Electric passenger vehicles, meanwhile, accounted for 7.30% of retail sales in October, compared with 8.45% in September and 3.55% in October last year. Despite the month-on-month moderation in their share, EV penetration remains significantly higher than the year-ago level.

The broader shift towards alternative powertrains comes amid increasing consumer interest in lower running costs and a wider choice of CNG, hybrid and electric models. FADA President Sai Giridhar, commenting on October's retail performance, said buyers were continuing to move towards CNG, hybrid and electric options, making alternative fuels an increasingly important part of India's passenger vehicle market.

The latest figures also come against the backdrop of a strong month for overall electric vehicle adoption. FADA reported that EV retail sales across vehicle categories touched an all-time high of approximately 3.55 lakh units in October, with overall EV penetration reaching around 11.5%, compared with approximately 6% a year earlier.

With alternative fuel-powered passenger vehicles once again moving ahead of petrol, October's retail numbers underline the gradual diversification of India's passenger vehicle market, even as petrol-powered models continue to account for a substantial share of sales.

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