FY25 Fuel Wise Trends: CNG Beats Diesel, EVs Outpace Hybrids

1 min read

Hyundai-Santro-Exterior-Boot-CNG-Tank

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.

Rank OEM Petrol Diesel CNG Electric Hybrid FY2025
1 Maruti Suzuki 11,48,363 0 5,91,730 0 20,672 17,60,765
2 Hyundai 4,08,242 1,07,187 79,267 3,970 0 5,98,666
3 Tata 2,80,355 72,333 1,39,460 61,443 0 5,53,591
4 Mahindra 1,13,268 4,25,329 0 12,890 0 5,51,487
5 Toyota 1,19,415 79,156 28,089 0 82,848 3,09,508
6 Kia 1,69,976 84,403 0 828 0 2,55,207
7 Honda 64,645 0 0 0 1,280 65,925
8 MG 20,647 4,935 0 36,585 0 62,167
9 Skoda 44,862 0 0 0 0 44,862
10 VW 42,230 0 0 0 0 42,230
11 Renault 37,900 0 0 0 0 37,900
12 Nissan 27,921 0 0 0 0 27,921
13 Citroen 6,507 9 0 0 0 6,516
14 Jeep 0 3,951 0 0 0 3,951
TOTAL 24,84,331 7,77,303 8,38,546 1,15,716 1,04,800 43,20,696

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.

Rank OEM Petrol Diesel CNG Electric Hybrid
1 Maruti Suzuki 65.2% 0.0% 33.6% 0.0% 1.2%
2 Hyundai 68.2% 17.9% 13.2% 0.7% 0.0%
3 Tata 50.6% 13.1% 25.2% 11.1% 0.0%
4 Mahindra 20.5% 77.1% 0.0% 2.3% 0.0%
5 Toyota 38.6% 25.6% 9.1% 0.0% 26.8%
6 Kia 66.6% 33.1% 0.0% 0.3% 0.0%
7 Honda 98.1% 0.0% 0.0% 0.0% 1.9%
8 MG 33.2% 7.9% 0.0% 58.8% 0.0%
9 Skoda 100.0% 0.0% 0.0% 0.0% 0.0%
10 VW 100.0% 0.0% 0.0% 0.0% 0.0%
11 Renault 100.0% 0.0% 0.0% 0.0% 0.0%
12 Nissan 100.0% 0.0% 0.0% 0.0% 0.0%
13 Citroen 99.9% 0.1% 0.0% 0.0% 0.0%
14 Jeep 0.0% 100.0% 0.0% 0.0% 0.0%
TOTAL 57.5% 18.0% 19.4% 2.7% 2.4%

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.

OEM Diesel Market Share Electric Market Share Hybrid Market Share
Mahindra 54.72% 11.14% –
Hyundai 13.79% 3.43% –
Kia 10.86% 0.72% –
Toyota 10.18% – 79.05%
Tata 9.31% 53.10% –
MG 0.63% 31.62% –
Jeep 0.51% – –
Maruti Suzuki – – 19.73%
Honda – – 1.22%
Total 100.00% 100.00% 100.00%

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.