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CNG, Hybrids and EVs Overtake Petrol in India’s Passenger Vehicle Market

India’s passenger-vehicle market is moving beyond petrol, with CNG, hybrids and EVs together accounting for 41.95% of August sales. The shift shows how cost, convenience and vehicle use are reshaping consumer choices.

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Busy Indian city road with cars and commercial vehicles, illustrating India’s changing passenger-vehicle market
busy Indian road reflects the growing diversity of vehicles on the country’s streets as CNG, hybrid and electric vehicles gain ground. Representational image. Image credit: David Iloba/Pexels

India’s car vehicle market has crossed a significant threshold. In August, CNG, hybrid and electric vehicles together accounted for 41.95% of passenger-vehicle retail sales, narrowly overtaking petrol at 40.85%. For years, petrol has been the default choice for Indian car buyers. But now, data shows CNG accounted for 25.28% of passenger-vehicle sales, hybrids for 9.04% and electric vehicles for 7.63%. Together, they made up 41.95%, compared with petrol’s 40.85%.

The gap is only 1.1 percentage points. But the direction of the change is more significant than the margin. Just a year earlier, petrol had an advantage of nearly 11 percentage points over the combined alternative-fuel category. The data, released by the Federation of Automobile Dealers Associations (FADA), comes against the backdrop of a rapidly expanding passenger-vehicle market. Retail sales reached 4,02,398 units in August, up 16.14% from August 2025 and the first time monthly August sales crossed four lakh.

CNG Still Does Most of the Work

The numbers also show that India’s transition away from conventional petrol is not being driven by electric cars alone.

CNG remains by far the largest alternative, accounting for more than a quarter of passenger-vehicle retail sales. Its appeal is relatively straightforward: lower running costs without the range and charging concerns associated with battery-electric vehicles.

Hybrids occupy a different space. They allow buyers to reduce fuel consumption while retaining the convenience of a conventional refuelling network. Their 9.04% share indicates that consumers are increasingly willing to pay for fuel efficiency without making the complete switch to an electric vehicle. EVs accounted for 7.63% of passenger-vehicle retail sales. That remains a minority share, but the broader picture becomes more striking when other vehicle categories are considered.

Two-wheelers are Moving Faster

Electric two-wheelers crossed a new threshold in August. Of the 17,14,610 two-wheelers retailed during the month, 10.68% were electric. It was the first time their share crossed 10% in a non-festival month, compared with 7.66% in August 2025. Overall two-wheeler retail sales grew 19.69% year on year, although they fell 5.70% from July.

The three-wheeler market is even further along. Electric models accounted for 65.30% of three-wheeler retail sales in August. That contrast is important. India’s vehicle transition is not happening at one uniform speed. Where vehicles are driven intensively and operating costs have a direct effect on earnings — particularly in commercial and three-wheeler applications — electric powertrains are already gaining much stronger market share.

Commercial vehicles are moving more gradually. Electric models accounted for 5.18% of commercial-vehicle retail sales in August, up from 2.06% a year earlier. Total commercial-vehicle sales reached 90,769 units, a 14.45% year-on-year increase.

A Record Market, But not Without Warning Signs

Across all categories, Indian automobile dealers retailed 24,23,201 vehicles in August, up 17.51% from a year earlier. Two-wheelers, passenger vehicles, commercial vehicles, tractors and three-wheelers each recorded their highest-ever August retail volumes, according to FADA. But the month-on-month picture was weaker. Total retail sales were 6.48% below July, when the industry had recorded a record month.

The decline does not necessarily signal a reversal in demand. FADA attributed part of it to the seasonal monsoon lull and the timing of the festival calendar, with Ganesh Chaturthi and some Onam-related buying shifting into September. The passenger-vehicle market also faces a less visible problem: stock.

Dealer inventory increased to around 38–40 days, compared with FADA’s recommended 21 days. More than half of passenger-vehicle dealers reported higher inventory than in July. That leaves manufacturers and dealers heading into the festive season with strong demand expectations but also a substantial amount of stock to manage.

The E20 question

The fuel transition is also unfolding amid India’s move towards higher ethanol blending in petrol. FADA says dealers are reporting some consumer hesitation around the E20 transition, petrol containing up to 20% ethanol, with running costs and fuel economy among the concerns cited.

That should not be read as proof that E20 is driving the entire shift. The rise of alternative powertrains has several overlapping explanations: greater model availability, lower running costs, improving EV technology and a wider consumer choice than existed a few years ago. But the timing is notable. Buyers who are uncertain about the long-term economics of petrol vehicles now have more alternatives to choose from.

Electric car charging with a plug, highlighting the growing EV market in India
Charging stations are becoming common in the country, reflecting the growing share of EVs in India’s passenger-vehicle market. Representational image. Image credit: Mike Bird/Pexels

What the August numbers really show

The headline figure is not that petrol cars have suddenly become unpopular. Petrol remains the largest single fuel category in India’s passenger-vehicle market. The more important change is that there is no longer one dominant alternative to petrol. CNG, hybrids and EVs are each attracting different kinds of buyers and together they have become a larger force than petrol.

The shift is even clearer in other segments. Electric vehicles already dominate three-wheelers and have crossed 10% of two-wheeler retail sales. India’s automobile transition, therefore, is unlikely to follow a simple path from petrol to electric cars. It is becoming a more complicated mix of CNG, hybrid, battery-electric and conventional vehicles, shaped by price, running costs, infrastructure and how each vehicle is used.

August’s numbers offer the clearest sign yet that this transition has moved from being a niche trend to a mainstream consumer choice. For the first time, India’s car buyers collectively chose alternatives to petrol more often than petrol itself.

EP Staff is the editorial team at EdPublica, an independent media organisation focused on science, education, environment and public policy. The team produces evidence-based news, features, explainers and analysis on issues that shape society and everyday life.

Sustainability

India Captures 5.7% of Global Greenfield Investment, Outpacing China

India accounted for 5.7% of global greenfield investment between 2020 and 2025, more than double China’s share. UNCTAD data highlight the concentration of investment in AI infrastructure, semiconductors and energy-transition technologies.

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Greenfield investment: Solar Farm and Global Greenfield Investment
Energy-transition technologies accounted for 7.8% of global greenfield investment between 2020 and 2025, according to UNCTAD data. Representational image. Image credit: Charl Durand/ Pexels

India accounted for 5.7% of global greenfield investment between 2020 and 2025, more than twice China’s 2.8% share, even as investment in strategically important industries remained concentrated in Europe and North America. The figures highlight India’s position as a major destination for new investment while exposing the wider challenge facing developing economies seeking a larger role in emerging technology and energy supply chains.

The findings, reported in the United Nations Conference on Trade and Development (UNCTAD)’s latest investment analysis, come amid a shift in global capital towards artificial intelligence (AI) infrastructure, semiconductors and energy-transition technologies. These sectors accounted for 44% of global greenfield investment in 2025, compared with 16% in 2020. UNCTAD’s July 2026 analysis identifies the shift as a significant change in the direction of international investment.

India Leads Among the Listed Asian Economies

India accounted for the largest share of global greenfield investment among the Asian economies listed in the report, followed by Malaysia at 4%, Indonesia at 3.8% and China at 2.8%.

Greenfield investment involves establishing new operations in another country, such as a factory, data centre or manufacturing facility. Unlike an acquisition, which transfers ownership of an existing business, a greenfield project can create new productive capacity, although its effects on jobs, domestic suppliers and technology transfer depend on how the project is developed.

India’s 5.7% share is therefore a measure of its participation in new investment projects, rather than a direct measure of jobs created, technology acquired or investment actually realised. Announced project values and completed investments can differ.

AI Infrastructure Attracts the Largest Share

The changing composition of investment is as significant as its geographical distribution. According to the figures cited in the report, global greenfield investment totalled $845.7 billion over 2020–2025. AI infrastructure and related technologies attracted the largest share, at 12.4%, followed by the semiconductor value chain at 8.1% and energy-transition technologies and services at 7.8%.

The shift reflects the capital requirements of the digital economy, from data centres and computing infrastructure to the chips that power AI systems. Energy-transition technologies represent another strategically important area as economies invest in technologies and services associated with changing energy systems.

These industries can shape future manufacturing capacity, technology development and supply-chain relationships. Attracting investment into them can offer host countries opportunities to build industrial capabilities, but the benefits depend on whether domestic businesses, workers and research institutions become part of the value chain.

Europe and North America Retain Their Advantage

Despite the growing participation of Asian economies, strategic investment remains concentrated in a limited number of regions. Europe accounted for 28.4% of strategic investment during 2020–2025, while North America captured another 28%, according to the reported figures. Developing Asia accounted for 26.5% among developing economies, with China, India, Indonesia, Malaysia and Singapore identified as leading destinations for new investment.

The distribution points to an important distinction: a country can attract a substantial share of new investment without having equal access to the industries commanding the greatest strategic importance. Strategic projects often require substantial capital, reliable energy and digital infrastructure, specialised skills and established supplier networks. Economies with these capabilities can offer investors advantages that are difficult for less industrialised countries to replicate quickly.

For developing countries, the challenge is not simply to attract foreign capital, but to secure investment in activities that strengthen domestic productive capacity and connect local businesses to international supply chains.

Industrial Policy Shapes Investment Competition

India’s record of industrial policymaking provides another part of the picture. The report’s figures show that India implemented 1,416 industrial policies between 2008 and 2021, compared with 4,201 in China and 4,025 in the United States. The figures place India among the countries that have used industrial policy extensively over the period.

Industrial policies can include incentives, subsidies, domestic manufacturing programmes and measures intended to develop particular industries. Governments use them to influence where companies invest, which technologies are developed and how domestic producers participate in global markets.

However, the number of policies alone does not establish their effectiveness. Their impact depends on implementation, the industries targeted, the resources committed and whether the measures lead to lasting improvements in productivity, technological capability and employment.

Wider Challenge for the Global South

UNCTAD’s central concern is that the shift towards strategic industries could deepen existing investment inequalities. Its July 2026 analysis found that low-income and lower-middle-income economies attracted only about 10% of global greenfield investment in strategic sectors between 2020 and 2025, compared with more than 20% in other sectors. The gap suggests that the industries attracting increasing amounts of capital are not necessarily opening opportunities evenly across the developing world.

For India, the 5.7% share offers evidence of its place in the global investment landscape. The next question is how effectively the country can translate new projects into stronger domestic supply chains, skilled employment and technological capacity, particularly in sectors such as semiconductors, AI infrastructure and energy-transition technologies.

For other developing economies, the concentration of investment presents a more fundamental concern: without the infrastructure, financing and skills required to compete, they risk remaining on the margins of industries that will shape future production and trade.

The distribution of greenfield investment will therefore matter beyond headline investment shares. It will help determine which economies build the productive capabilities needed to participate in the next phase of industrial development.

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Sustainability

The Climate Problem Hiding in Your Kitchen Bin

Food waste sent to landfills can generate methane as it decomposes without oxygen, adding to greenhouse gas emissions and the climate crisis.

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Waste pickers sorting through a large landfill filled with discarded plastic and other waste.
Waste pickers sort through discarded materials at a landfill. Food waste buried in landfills can release methane as it decomposes in oxygen-deprived conditions.Image Credit:UNDP

Every day, more than one billion meals go uneaten around the world. What appears to be a problem of excess food, poor planning or household waste is also becoming a climate problem, as discarded food can generate methane when it decomposes in landfills.

Global food waste reached an estimated 1.05 billion tonnes in 2022, accounting for nearly one-fifth of all food available to consumers at the retail, food service and household levels, according to the United Nations Environment Programme (UNEP) Food Waste Index Report 2024.

Households accounted for about 60 per cent of this waste, highlighting how everyday food consumption is closely connected to the global climate challenge.

How wasted food becomes a climate problem

Food waste becomes particularly problematic when it is sent to landfills. Buried beneath layers of other waste, organic matter decomposes in oxygen-poor conditions. Microorganisms then break it down and release methane.

Methane is a far more powerful heat-trapping gas than carbon dioxide over shorter periods. The UN estimates that methane traps about 86 times more heat than carbon dioxide over a 20-year period.

Landfills are therefore an important source of human-caused methane emissions. In the United States, municipal solid waste landfills are the third-largest source of human-related methane emissions.

The scale of food waste also means that the climate impact begins long before food reaches a landfill. Food that is never eaten still requires land, water, energy and other resources to produce, process, transport and store.

The Food and Agriculture Organization (FAO) estimates that around 1.4 billion hectares of agricultural land ,roughly 28 per cent of the world’s agricultural land is used to produce food that is ultimately lost or wasted.

Food waste can also contribute indirectly to deforestation because agricultural expansion remains a major driver of forest loss. Wasting food therefore means wasting the land and natural resources used to produce it.

Cutting waste could deliver faster climate benefits

The climate implications are significant, but methane’s relatively short atmospheric lifetime also presents an opportunity.

Unlike carbon dioxide, which can remain in the atmosphere for centuries, methane breaks down much faster. Cutting methane emissions can therefore produce climate benefits within decades.

“At a time when the world is searching for practical ways to slow warming quickly, tackling food waste may be one of the most immediate and cost-effective climate solutions available,” said Martin Krause, Director of the Climate Change Division at UNEP.

The Food Waste Breakthrough initiative aims to halve food waste by 2030 and could reduce methane emissions by up to 7 per cent.

food waste
landfill
climate crisis

Food waste represents a major environmental threat .Image credit: Unsplash/Simon Peel

Several countries are already attempting to reduce waste before it reaches landfills. Brazil has introduced national plans focused on reducing food and organic waste, while UNEP is working with authorities, schools, communities and food businesses in Rio de Janeiro to reduce food waste.

In Kenya, a UNEP-supported initiative is recovering surplus food from across the agricultural value chain and redirecting it to early childhood education centres in underserved communities.

What happens to unavoidable food scraps?

Preventing food waste is the most effective way to avoid methane emissions. But food scraps that cannot be prevented can also be managed differently.

When organic waste is separated from other rubbish and composted in oxygen-rich conditions, it does not produce methane in the same way as food buried in an anaerobic landfill environment.

This approach is being promoted in several African countries, where organic material makes up more than half of municipal solid waste. Eleven governments, with support from the UNEP-convened Climate and Clean Air Coalition, have committed to incorporating waste pickers into formal waste-management systems and training them to sort and compost organic waste.

Another emerging approach uses black soldier flies. Their larvae consume organic waste, allowing food scraps to be converted into useful biomass. The approach is already being used in waste-management systems in countries including Uganda and Malawi.

A climate solution hiding in the bin

Global efforts to tackle food waste have gained momentum, but progress remains insufficient. The world is still far from meeting the Sustainable Development Goal of halving per-capita food waste by 2030.

More than 60 countries have also pledged, through the Declaration on Reducing Methane from Organic Waste, to cut waste-sector methane emissions by 30 to 35 per cent below 2020 levels by 2030.

For consumers, the climate connection can begin with something as simple as buying only what is needed, storing food properly and using leftovers.

“Every meal rescued, shared or never wasted is food put to better use. It is also methane avoided,” Krause said.

The message is straightforward: reducing food waste is not only about saving food. It is also about reducing the methane released when that food becomes rubbish and slowing warming in the process.

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Earth

Hunter Valley Coal Mine Gets Approval to Run to 2045. What Does It Mean for Australia’s Climate Transition?

Australia’s Hunter Valley coal mine has been approved to operate until 2045, raising questions about how the extension fits into the country’s transition towards lower emissions and its net-zero target.

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Open-pit coal mine with heavy machinery, conveyor belts and piles of extracted coal.
Heavy machinery and conveyor belts operate at an open-pit coal mine. Representational image. Image credit: Pexels

Australia’s transition away from fossil fuels faces a new test after New South Wales approved the continuation of the Hunter Valley Operations (HVO) coal mine until 2045.

The NSW Independent Planning Commission (IPC) on September 30 approved the continuation of HVO North until the end of 2045 and HVO South until the end of 2042. The project would allow an estimated 429 million tonnes of coal to be extracted from the Hunter Valley near Singleton.

The decision is significant not only because of the scale of the mine, but because it extends a major coal operation into the period in which Australia is committed to sharply reducing its greenhouse-gas emissions.

Australia’s current climate commitments include cutting national emissions by 43 per cent from 2005 levels by 2030 and by 62–70 per cent by 2035, with net-zero emissions targeted for 2050.

The latest government inventory estimates Australia’s emissions at 452.4 million tonnes of carbon dioxide equivalent in the year to June 2026, a preliminary 1.8 per cent decline from the previous year. Emissions in the year to March 2026 were 25 per cent below 2005 levels.

Against that backdrop, the IPC acknowledged that the HVO project would have a substantial climate footprint. Its statement of reasons estimates that the project could result in about 809 million tonnes of greenhouse-gas emissions from local mining operations and the eventual combustion of exported coal overseas. The commission said those emissions would contribute to climate impacts in the Hunter, NSW and globally.

The 809-million-tonne figure needs an important qualification to note. it is a lifecycle-related estimate that includes overseas combustion emissions and should not be interpreted as emissions produced directly by the mine.

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Coal mine.Representational image.Image credit:Pexels

The economic case for the extension is substantial. HVO employs more than 1,500 people and engages more than 800 suppliers, according to evidence presented to the IPC. The NSW Government says the continuation could secure up to 1,500 ongoing jobs and create about 600 temporary positions through infrastructure upgrades, subject to federal approval.

The approval also comes with conditions intended to address the mine’s emissions and its eventual transition. HVO must prepare a Scope 3 Management Plan dealing with emissions associated with exported coal, maximise renewable electricity use at the mine and purchase additional carbon offsets. It must also prepare a comprehensive closure plan within 12 months, in consultation with local councils and communities, outlining how the mine will transition towards closure while supporting workers and the local economy.

The NSW Government argues that the decision can support regional employment while maintaining the state’s broader emissions-reduction pathway. It says the approved proposal has 43 per cent lower Scope 1 emissions than the company’s 2022 application. NSW’s 2026–50 coal policy also allows extensions of existing mines while ruling out applications for new greenfield coal mines.

At the national level, the federal Safeguard Mechanism is intended to reduce emissions from Australia’s largest industrial facilities. The government says the mechanism is designed to put covered facilities on a trajectory consistent with the country’s 2030 target and net-zero goal.

That creates the central question around HVO’s extension. How does Australia manages the economic and employment role of existing coal regions while reducing emissions over the same period.

The NSW approval does not settle that question. The project still requires approval from the Australian Government under the Environment Protection and Biodiversity Conservation Act.

For the Hunter Valley, the decision provides a longer operating horizon for an established coal industry. For Australia’s climate transition, it brings the challenge of managing an economy in which existing fossil-fuel assets continue operating while national policy seeks progressively sustainable energy and lower emissions.

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