CNG, Hybrid & EVs Contribute Over 40% To Indian Passenger Vehicle Sales In June

Over 40 per cent Indian car buyers opted for compressed natural gas (CNG), hybrid, and electric vehicles, passenger car sales data revealed in June 2026. The move marks a major shift for Indian car buyers from conventional petrol and diesel vehicles, as consumers are prioritising vehicles which offer higher fuel efficiency and lower running costs. The data shared by the Federation of Automobile Dealers Association (FADA), revealed that alternative-fuel passenger cars contributed a record 40.2 per cent retail sales last month, a jump from 33.3 per cent recorded in June 2025, and 38.02 per cent in May this year.

CNG-powered vehicles remained the biggest contributor to alternate-fuel vehicles with a 24.3 per cent marketshare. Hybrid cars were next with an 8.3 per cent share, while electric vehicles held a 7.8 per cent share. This is for the first time that the combined share of petrol and diesel vehicles have dropped below 60 per cent. Passenger EV sales stood at 31,823 units in June, registering an all-time high with respect to retail sales.

Retail PV sales stood at 410,853 units in June this year, the highest-ever for the month, registering a 28.6 per cent growth year-on-year. The sales data further revealed that rural markets managed to outperform urban centres with a 35.1 per cent growth, as compared to 24.7 per cent in cities. That said, rural demand remained cautious due to the delayed southwest monsoon.

Furthermore, FADA said the growing preference for alternative fuels was supported by improving supplies after the ceasefire in West Asia, allowing improved logistics and relaxed crude oil prices. A sustained consumer interest in fuel-efficient powertrains, fresh model launches, and healthy booking numbers further helped with alternate-fuel vehicle demand. FADA also noted that price increases between 2-3 per cent in June had little impact on bookings, while dealers reported normalised supply of vehicles, following disruptions due to the West Asia crisis. This suggested a resilient demand in the market despite several uncertainties.