New Delhi: Sales of electric, hybrid and CNG-powered passenger vehicles surged last fiscal, growing more than twice as fast as the overall auto market and accounting for nearly one-third of total car sales, reflecting a strong shift towards cleaner mobility in India, The Economic Times reported.
Around 1.34 million such vehicles were sold in the year ended March 31, marking a 31 per cent rise from 1.02 million units in the previous year, according to data from the government’s Vahan portal and the Society of Indian Automobile Manufacturers. In comparison, total passenger vehicle sales grew 13 per cent to about 4.67 million units.
The strong growth comes as India looks to reduce its dependence on oil and gas imports, especially amid global supply concerns linked to tensions in West Asia. Rising fuel costs and concerns over air pollution are also pushing consumers to opt for vehicles with lower running costs and reduced emissions. Improved charging networks and wider availability of CNG are further supporting demand.
Industry experts say the shift is being driven largely by cost advantages and increasing product choices. Automakers have been launching new models across segments, making cleaner fuel options more accessible to buyers.
Companies such as Tata Motors and Maruti Suzuki have reported strong demand for alternative fuel vehicles. CNG vehicle sales across the industry rose 20 per cent, while electric vehicle volumes crossed the 200,000-unit mark during the year.
At Tata Motors, CNG vehicle sales grew 24 per cent to 170,000 units, while its electric vehicle sales jumped 43 per cent to 92,000 units. The company expects momentum to continue, supported by rising demand for SUVs, CNG and EVs.
Meanwhile, Maruti Suzuki has also seen robust demand for CNG models and growing acceptance of electric vehicles, with more offerings entering the mainstream market.
The trend is expected to accelerate further as emission norms tighten and more EV launches are lined up. Models such as the Sierra EV from Tata Motors, new offerings from VinFast, and upcoming electric SUVs from Toyota Kirloskar Motor and Kia India are set to enter the market.
Recent launches include the e-Vitara from Maruti Suzuki, the XEV 9e from Mahindra & Mahindra, and the Punch EV from Tata Motors.
Industry estimates suggest electric vehicles could account for 13–15 per cent of new car sales in India by the end of the decade, up from around 4 per cent currently.
