Alternative-fuel passenger vehicles fast catching up with petrol ones

Passenger vehicle retail sales increased 19% year-on-year to 4.1 lakh units, crossing the four-lakh mark for the first time in July

NEW DELHI: Alternative-fuel passenger vehicles are on the verge of overtaking petrol-powered models in India, with CNG, hybrid and electric vehicles accounting for 40.6% of passenger vehicle retail sales in July, just behind petrol’s 41.7%, according to data released by the Federation of Automobile Dealers Associations (FADA) Thursday. The gap has narrowed sharply from 13.2 percentage points a year ago to just over a percentage point, reflecting a rapid shift in buyer preferences.The trend came as India’s automobile retail market recorded its strongest-ever July performance, with overall registrations rising 25.8% year-on-year to a record 25.9 lakh units. For the first time, all six vehicle categories — two-wheelers, passenger vehicles, commercial vehicles, three-wheelers, tractors and wheeled construction equipment — posted their highest-ever July retail volumes, underscoring broad-based demand across the industry.

Passenger vehicle retail sales increased 19% year-on-year to 4.1 lakh units, crossing the four-lakh mark for the first time in July. Within the segment, CNG vehicles accounted for 24.6% of sales, hybrids for 8% and electric vehicles for 7.9%. While hybrid vehicles continue to use petrol as their primary fuel source, automakers classify them as alternative-fuel vehicles because they combine an internal combustion engine with an electric powertrain to improve efficiency and reduce emissions. Petrol’s share, meanwhile, declined to 41.6% from 47.6% a year earlier. FADA said fresh model launches, affordability gains following GST changes and consumers’ increasing focus on lower running costs supported demand for alternative powertrains. The dealers’ body also noted that uncertainty surrounding the transition to E20 fuel appears to have nudged some buyers towards CNG, hybrid and EVs.

The transition was equally evident in the two-wheeler market. Electric two-wheelers accounted for a record 11.2% of retail sales in July, up from 7.7% a year earlier.Overall EV retail registrations across all vehicle segments climbed to an all-time high of 3.28 lakh units during the month, taking EV penetration to about 12.7% of total vehicle retail sales from 9.6% a year ago. Maruti Suzuki retained its lead in the PV market in July, retailing over 1.6 lakh units.