July 3, 2026. India’s interest in electric, hybrid, and compressed natural gas (CNG) vehicles accelerated after the war in Iran triggered a surge in fuel prices, according to the President of the country’s automotive dealers’ association. These models reached a record share of passenger car sales in June.
Alternative fuel vehicles accounted for 40.35% of retail passenger car sales in June, up from 38% the previous month, as consumers sought to reduce maintenance costs following successive increases in gasoline and diesel prices in May.
“We need to see if this is a momentary emotional reaction from customers or if this growth is here to stay,” C.S. Vigneshwar, President of the Federation of Automobile Dealers Associations, told Reuters.
Total vehicle sales rose 21.8% to a record 2.6 million units, while passenger car registrations grew 28.6% year-on-year to 410,853 units.
Within the passenger car segment, CNG models accounted for 24.3% of total sales, while hybrids represented 8.3% and electric vehicles 7.8%.
Industry leader Maruti Suzuki India Limited reported last month that orders for its natural gas cars had surged 40% since the increase in fuel prices.
Meanwhile, the share of electric vehicles in total two-wheeler sales reached 10.6%, hitting double digits for the first time, according to data from the dealers’ federation.
