India's Auto Market Moving Beyond Petrol And Diesel

By Jony Shekhawat | Published Date : April 27, 2026

India's passenger vehicle market is seeing a steady shift as buyers move beyond petrol towards CNG, EVs and other fuel options.

If you look at the market now, it does not feel exactly like before. The change did not happen suddenly, and maybe that is why many people did not notice it early. But over the last three years, things have shifted quite a bit. Petrol is still there, still leading, but its strong grip is not the same now. Other fuel options have quietly taken some space.

Petrol Leads With Poverty

Table of Contents

1. Petrol Leads With Poverty

2. CNG Has Quietly Become A Big Option

3. EVs Are Growing, Just At Their Own Pace

4. Diesel Is Still Around, Not Gone Yet

5. Infrastructure Is Helping This Shift

► Read More: Hyundai–TVS Partnership to Build Future-Ready Electric Three-Wheelers

In 2025, petrol actually lost share. It went from 59.4% down to 53.3 %. What makes it a bit interesting is that total car sales still increased to around 45.8 lakh units. So yes, more cars were sold, just not as many petrol ones.

Then in FY2026, again the same thing happened. Petrol stayed on top, but its share came down to 47.48%. It is still leading, but clearly not as comfortably as before. You can feel that the market is spreading out.

CNG Has Quietly Become A Big Option

CNG did not grow loudly, but it did grow fast. In FY2026, its share reached 21.98%, up from 19.60% earlier. In simple terms, out of about 47 lakh vehicles sold, around 10.34 lakh were CNG. That is almost one in every four cars.

A few years back, it was only around 12 to 13%. Now it is close to 22%. The reason is not complicated at all. Running cost matters. CNG is about 40 to 50% cheaper than petrol per kilometre. Also, the extra cost at the time of purchase, around ₹80,000 to ₹1 lakh, does not feel too heavy for many buyers.

EVs Are Growing, Just At Their Own Pace

Electric vehicles are still small in share, no doubt about that. In FY2026, they made up 4.25% of total sales. Not big, but also not standing still. If you combine CNG, EVs and hybrids, the number becomes more interesting. Together they crossed 13.4 lakh units. That is close to 30% of the market. So almost one out of every three cars is now not purely petrol or diesel.

This shift is also starting to show on the commercial side. Electric trucks and electric buses are being used in cities. Not everywhere, but you can see the beginning.

Diesel Is Still Around, Not Gone Yet

Diesel was expected to drop fast, but it has not really happened like that. In 2025, its share even went slightly up to 18.3%. This is mostly because of SUVs. Small diesel cars are reducing, that is true. But in bigger vehicles, diesel still makes sense for many buyers. So it is not growing much, but it is also not disappearing.

Infrastructure Is Helping This Shift

One big reason behind all this is infrastructure. CNG stations have really grown in number. There were 947 back in 2014 but now there are over 6,000. That's an increase and its made CNG a more practical option in many areas even in smaller towns.

When it comes to vehicles or EVs things are moving slowly but surely. There are incentives in place a wider range of models to choose from and the charging infrastructure is getting better. It's not perfect yet. Progress is being made, one step at a time and CNG and EVs are becoming more viable options, for people.

You Might Like: Electric Truck Push: Drivn & Energy in Motion Plan 1,000 Deployments in India

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Frequently Asked Questions on Commercial Vehicles

Q1. What is the average mileage of mini trucks in India?

Ans. Most mini trucks in India offer mileage between 18 to 25 km per litre depending on load, driving condition and engine type.

Q2. Which fuel type is best for long-distance trucks?

Ans. Diesel is generally preferred for long-distance trucks due to better torque, fuel efficiency and availability of refuelling stations across highways.

Q3. What is the loading capacity of small commercial vehicles?

Ans. Small commercial vehicles usually have a loading capacity between 500 kg to 1500 kg depending on the model and build.

Q4. Are electric buses suitable for city transport?

Ans. Yes, electric buses are suitable for city use as they offer lower running cost, reduced noise and zero tailpipe emissions, making them ideal for urban transport systems.

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