FY2025 (April ’24 to March ’25) wrapped up with 43.2 lakh cars sold across India, revealing a change in fuel preferences. Petrol remained dominant with 57.5% market share (24.84 lakh units), but the spotlight turned to alternative fuels. CNG surpassed diesel for the first time ever, showcasing a growing preference for cleaner and economical options. Electric vehicles (EVs) also advanced, surpassing hybrids in total numbers.
CNG Outshines Diesel For The First Time
Sales of CNG-powered vehicles reached over 8.38 lakh units, just ahead of diesel, which totalled 7.77 lakh units. This shift marks a significant change in India’s automotive fuel preferences. The main driver of this change was Maruti Suzuki, which sold 5.91 lakh CNG vehicles, making up a third of its total sales. Tata Motors also contributed significantly with 1.39 lakh CNG cars, indicating its strategic diversification into this fuel segment.
One reason for CNG’s rise is that carmakers are now offering CNG in higher trims, not just base or mid-level models. Maruti Suzuki and Tata now provide CNG options in its higher variants. This has attracted more buyers, including urban customers seeking efficiency and comfort.
CNG’s benefits include low running costs, reduced emissions, and enhanced availability at pumps, particularly in metro cities and Tier-II towns. All these benefits make CNG an attractive option for both fleet operators and private buyers looking for long-term savings.
EV Momentum Builds, But Infrastructure Lags
EV in FY25 accounted for 1.15 lakh units, just 2.7% of the total sales, yet they overtook hybrids (1.04 lakh units). Tata Motors dominated the electric segment with 61,443 EVs, making up 11% of its total sales, while MG had its highest electric share, as 59% of its total sales comprised of EVs.
Yet, the overall performance of EVs is still meager, majorly due to limited charging infrastructure and higher upfront costs, especially beyond Tier-I cities.
Segment Leaders: Diesel, Hybrid & Electric
Diesel: Still relevant for its frugal performance and SUV buyers, with Mahindra accounting for 54.72% of the total diesel sales, with a staggering 77% of its total sales via diesel (4.25 lakh units).
Electric: Tata (53.10%) and MG (31.62%) are racing ahead, while Hyundai and Mahindra are gradually scaling their EV operations.
Hybrid: Toyota is virtually synonymous with hybrids in India, contributing 82,848 units, accounting to almost 80% (79.05%) of total hybrid sales, mostly from models like the Hyryder and Innova Hycross.
Conclusion: Transition Is Underway, But Not Uniform
The FY25 stats clearly reveals a shift among consumer: moving away from diesel due to its uncertain future and opting for CNG. While petrol still leads, alternative fuels are shaping the future landscape. EVs, however, would still require strong support from both the government and private sector to expand significantly. As India aims for greener mobility, automakers are wisely diversifying their offerings to address both present demand and future readiness.
