Auto Sales Surge 29% In June, EVs and Hybrid Vehicles Gain Record Market Share

Alternative-fuel vehicles account for 40.4 percent of retail car sales in June as higher petrol and diesel prices boost demand as per industry body...

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Retail car sales surged 29 percent from a year earlier in June, with vehicles powered by compressed natural gas and ‌other alternative fuels accounting for a record percentage of total sales. Alternative-fuel vehicles such as CNG, hybrid and electric variants/models accounted for a record 40.4 percent of passenger vehicle retail sales in June. Fuel prices had spiked due to the impact of the West Asia war and this record witnessed in alternative-fuel vehicles is a result of that as per the Federation of Automobile Dealers Association.

Experts believe due to the fuel price rate hike during the West Asia conflict, consumers increasingly focused on lower cost alternatives. Maruti Suzuki had stated last ‌month that bookings for CNG cars had spiked

40 percent since ‌the fuel rate hikes.

In June, total two-wheeler sales surged 21.2 per cent year-on-year to 1.8 million ‌units the Federation of Automobile Dealers Association stated. Share of electric two-wheelers spiked to 10.6 percent, hitting the double-digit mark for the first time.

Overall total vehicle sales gained 21.8 per cent to 2.6 million units, the highest ever for June due to strong demand for passenger vehicles and two-wheelers as per the industry body. Car sales ‌spiked to 410,853 units, with sales of CNG vehicles making up 24.3 per cent of the total, hybrid vehicles accounting for 8.3 per cent and electric vehicles contributing 7.8 per cent the Federation of Automobile Dealers Association stated.

The Federation of Automobile Dealers Association mentioned that the record June performance reflects the structural strength of India’s automobile market, aided by improving OEM supplies and healthy demand across both urban and rural markets. Industry experts believe the biggest structural shift in the passenger vehicle market came from the rapid adoption of alternative-fuel vehicles and that really is not just the highlight for monthly data but will be the factor that will be tracked going forward as well.