Car buyers in India are moving beyond the traditional petrol-versus-diesel debate. They are now opting for lower running costs and fuel-efficient alternatives. This shift is highlighted in the June 2026 FADA sales report, where alternative-fuel cars (CNG, hybrid and EV) crossed the 40% mark for the first time. One of the key reasons behind this surge is the petrol and diesel prices remaining high over the last few months. Many customers seem to have started exploring CNG, hybrid and electric vehicles as practical long-term options. That shift is now becoming evident in retail registrations, as alternative-fuel cars are recording a milestone, and CNG is retaining its pedestal as the best option, despite growing EV adoption.
CNG Remains The Biggest Alternative Fuel Choice
Out of the 40.35% share
of alternative-fuel passenger vehicles in June, CNG remained the clear leader and emerged as the highly preferred alternative fuel option. It accounted for 24.33% of total registrations, a rise from 20.82% a year ago. CNG was followed by hybrids, which also strengthened their presence and rose to 8.27% from 7.97% in June 2025. Electric vehicles, however, recorded the fastest growth among the three, with their market share rising to 7.75% from 4.80% a year earlier.
While electric vehicles continue to grow in the country, the dominance of CNG shows that buyers are still preferring CNG as their alternative fuel. This is because CNG enjoys a more established refuelling network, lower fuel costs and relatively affordable purchase prices than its electric and hybrid counterparts.
The growing popularity of CNG is also backed by an expanding product portfolio. From affordable hatchbacks to compact SUVs, buyers today have more factory-fitted CNG options than ever before. Manufacturers including Maruti Suzuki, Tata Motors, Hyundai and Toyota have steadily broadened their CNG range in India. With demand remaining strong, more CNG variants are expected to be introduced across new model launches in the coming months.
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