India Auto Fuel Mix 2025: EV and CNG Gain Market Share, Petrol Slips

India’s automobile retail market in calendar year 2025 reflected a clear shift in fuel preferences, even as conventional powertrains continued to dominate volumes. Data released by the Federation of Automobile Dealers Associations (FADA) shows that while petrol and diesel together still account for the bulk of vehicle retail, alternative fuels — particularly electric vehicles (EVs) and CNG — expanded their footprint meaningfully over both the full year and the December 2025 period.

CY2025 marked a clear shift from segment-specific growth to a more broad-based industry transition, with EV adoption expanding beyond three-wheelers and CNG firmly establishing itself as a mass-market alternative in the passenger vehicle segment.

Petrol and Diesel: Dominance intact, share erosion visible

Petrol remained the single largest fuel type in India’s automobile retail mix during CY-2025. However, its overall share declined compared to CY-2024, reflecting changing consumer priorities around running costs and regulatory alignment. 

Diesel followed a similar trajectory, with a marginal year-on-year decline in share, especially outside the commercial vehicle space where diesel continues to be structurally relevant. The latest data from FADA reinforces this trend. Both petrol and diesel saw a softer share compared to December 2024, suggesting that the shift is not merely annual averaging but visible even in monthly buying behaviour.

CNG strengthens mass-market position

CNG emerged as one of the most stable gainers in CY-2025. Supported by favourable operating economics and improved availability in urban and semi-urban markets, CNG vehicles increased their overall market share compared to CY-2024. Passenger vehicles remained the key driver of this growth, with CNG increasingly viewed as a viable long-term alternative to petrol in high-usage scenarios.

December 2025 maintained this momentum, with CNG retaining a materially higher share than the same month last year, underlining sustained consumer confidence in the fuel option.

EVs: Strong growth led by last-mile mobility

Electrification continued to progress steadily in CY2025, with EVs recording the sharpest year-on-year (YoY) increase in overall market share. Three-wheelers remained the backbone of EV adoption, but two-wheelers and passenger vehicles also contributed incremental gains during the year.

In December 2025, the EV share rose compared to the same month the previous year, driven by improved product availability, selective incentive support, and stronger urban acceptance.  While EV penetration remains modest in absolute terms at an overall level, the trajectory clearly points upward.

Also READ: India's Electric Vehicle Sales Rise Over 77% in 2025; Tata Motors Leads, Followed by JSW MG: FADA

Hybrids and PHEVs: Niche yet relevant

Hybrid vehicles retained a stable share during CY2025, acting as a transition technology for buyers seeking efficiency without full electrification. Plug-in hybrids (PHEVs), however, remained negligible in overall market share, reflecting limited model availability and higher acquisition costs.

FADA’s CY2025 fuel-wise data underscores a slow but irreversible diversification of India’s automobile fuel mix. Petrol and diesel are no longer expanding by default; instead, growth is being distributed across CNG and EVs. For OEMs and dealers, this reinforces the need for multi-fuel portfolios and infrastructure-ready retail strategies. For policymakers, the trend highlights the importance of balanced support across charging and CNG refuelling ecosystems.