Alternative-Fuel Cars Outpace Petrol in India

Alternative-fuel passenger vehicles overtook petrol-powered cars in India for the first time in August, according to the Federation of Automobile Dealers Associations (FADA). CNG, hybrid and electric vehicles together accounted for nearly 42% of passenger-vehicle sales, compared with around 41% for petrol cars.

The shift comes amid rising oil prices linked to the Middle East conflict and growing concerns over E20 petrol, which contains 20% ethanol. While concerns over fuel economy in older vehicles initially encouraged some buyers to move away from petrol, FADA said the trend is also being supported by a wider choice of alternative-fuel models, improved EV driving ranges and expanding charging infrastructure.

India’s auto market also recorded 17.5% year-on-year growth in retail vehicle sales in August, reaching a record 2.4 million units for the month. However, FADA warned that further vehicle price increases could affect demand. With the festive season approaching, dealers remain optimistic despite inflation and rising input costs.

Pic courtesy: google/ images are subject to copyright