New Delhi, September 7, 2026 (Yes Punjab News)
CNG, hybrid and electric vehicles together overtook petrol-powered cars in India’s passenger vehicle market for the first time in August, signalling a notable shift in consumer preferences, according to data released by the Federation of Automobile Dealers Associations (FADA).
Alternative-fuel vehicles accounted for 41.95 per cent of passenger vehicle sales during the month, compared with 40.85 per cent for petrol vehicles, FADA said.
The shift comes just over a year after petrol vehicles held an advantage of nearly 11 percentage points over alternative-fuel vehicles, highlighting the rapid change in buying patterns in India’s automobile market.
The broader auto sector also recorded its highest-ever August retail sales at 24,23,201 units, registering 17.51 per cent year-on-year growth. Two-wheelers, passenger vehicles, commercial vehicles, tractors and three-wheelers all posted record August sales, according to FADA.
Passenger vehicle retail sales stood at 4,02,398 units, up around 16 per cent year-on-year, marking the first time the segment crossed the four-lakh monthly threshold in August.
However, FADA cautioned that the strong year-on-year growth was partly influenced by a low base in August 2025, when buyers had delayed purchases while awaiting the GST 2.0 rate cut.
“The true test of the season lies in showroom conversion through September to November, not in year-on-year optics,” FADA said.
FADA President Sai Giridhar said the outlook for the next three months remained optimistic, with festive demand, the after-effects of the monsoon in rural markets and inventory management emerging as key factors during the peak season.
The dealers’ body expects commercial vehicle demand to strengthen as post-monsoon freight movement, infrastructure activity and harvesting pick up.
For September-November, 81.62 per cent of dealers expect market growth, while 17.09 per cent anticipate a flat market and 1.28 per cent foresee a decline.
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