New Delhi, Sep 8: Indian car buyers are increasingly looking beyond traditional petrol vehicles, with CNG, hybrid and electric cars together overtaking petrol-powered vehicles in monthly retail sales for the first time.

According to data from the Federation of Automobile Dealers Associations (FADA), alternative-fuel passenger vehicles accounted for 41.95 per cent of retail sales in August, compared with 40.85 per cent for petrol and ethanol vehicles. A year ago, petrol had a lead of nearly 11 percentage points over these alternative options.

CNG remained the most popular alternative, accounting for 25.28 per cent of passenger vehicle sales. Hybrid cars contributed 9.04 per cent, while electric vehicles had a 7.63 per cent share. Diesel vehicles accounted for 17.21 per cent of sales.

The changing preference is being driven largely by running costs. Buyers are increasingly comparing the long-term cost of owning a vehicle, while concerns around the E20 fuel transition and higher fuel prices are also influencing purchasing decisions.

The shift comes at a time when the overall automobile market is performing strongly. Passenger vehicle retail sales rose 16.14 per cent year-on-year to 4,02,398 units in August, crossing the four-lakh mark for the first time in the month. Total automobile retail sales stood at 24.23 lakh units, up 17.51 per cent from a year earlier.

The trend is also significant for automakers. With customers now giving greater importance to fuel efficiency, running costs and new technology, car companies are likely to expand their focus on CNG, hybrid and electric models.

For consumers, the growing competition between different powertrains means more choices. The August numbers suggest that alternative-fuel vehicles are no longer a niche segment and are steadily becoming a mainstream part of India’s car market.