TL;DR
Indian automakers are broadening their powertrain options to include electric, hybrid, and CNG vehicles, as buyer preferences shift away from solely petrol and diesel due to rising costs and stricter norms.
Indian carmakers are increasingly diversifying their powertrain offerings beyond traditional petrol and diesel options, responding to rising fuel prices, stricter emission norms, and evolving regional buyer preferences. This strategic shift involves a broader integration of electric, hybrid, and Compressed Natural Gas (CNG) options across their model lineups.
Data from the Federation of Automobile Dealers Associations (FADA) for September 2026 indicates a notable shift in market dynamics. Petrol-powered cars accounted for 41% of total sales, a decrease from 47% in September 2025. Conversely, the combined market share of CNG, hybrid, and electric vehicles rose to 41% from 35% during the same period.
Executives, such as Renault Group India CEO Stephane Deblaise, emphasize that expanded market coverage now hinges as much on offering diverse engine choices as on introducing new models. This multi-powertrain approach is becoming crucial for automakers to cater to diverse customer demands and manage rising running costs for consumers, particularly in regions where options like CNG hold significant market share.
