By The Straits Times | Created at 2026-09-07 05:06:25 | Updated at 2026-09-20 06:12:15
1 week ago
Sales of alternative-fuel passenger vehicles, including compressed natural gas, hybrid and electric models, outpaced those of petrol-powered cars in India in August for the first time, the country’s auto dealers’ body said on Sept 7.
The shift reflected lower running costs for alternative-fuel vehicles and consumer uncertainty over the transition to E20 petrol, prompting buyers to consider CNG, hybrid and electric models, the Federation of Automobile Dealers Associations (FADA), which represents dealers of India’s leading car and two-wheeler makers, said.
India’s shift to E20 petrol, which contains 20 per cent ethanol and is intended to reduce reliance on imported crude, from E10 has prompted consumer criticism, particularly among owners of older vehicles, over concerns that the higher ethanol content could reduce fuel economy and affect engine performance.
The mandate to use the blend, which came into force in 2025, has now become one of the biggest political flashpoints for Prime Minister Narendra Modi’s government and motorists in the world’s third-biggest car market.
The government earlier dismissed the backlash, calling it “wild claims” and asking people to not “fall for the rage bait”.
Alternative-fuel models accounted for nearly 42 per cent of passenger-vehicle sales, edging petrol vehicles at about 41 per cent, according to the dealers’ body.
“A little over a year ago petrol led this contest by nearly 11 percentage points; that lead has now been erased,” FADA said.
India’s automobile retail sales rose 17.5 per cent year-on-year in August to 2.4 million vehicles, driven by stronger demand for two-wheelers and passenger vehicles, the industry body said. REUTERS
