Fuel mix at parity after August's crossover, petrol edges ahead in September

India’s passenger vehicle market saw petrol regain a marginal lead over alternative fuels in September, a month after the latter overtook petrol for the first time. According to retail data released by the Federation of Automobile Dealers Associations (FADA), petrol and ethanol-powered vehicles accounted for 41.27% of passenger vehicle registrations in September.The September numbers indicate that the shift seen in August was not yet a decisive change in consumer preference. Alternative fuels had overtaken petrol in August, but the gap reversed in September. FADA described the development as an inflection rather than a clear flip, with the two fuel groups now effectively at parity and likely to trade the lead from month to month.Within the alternative-fuel category, CNG and LPG accounted for 23.11% of passenger vehicle retail in September, down from 25.28% in August. Hybrid vehicles increased their share to 9.44%, compared to 9.04% in August, while electric vehicles reached a new high of 8.45%, up from 7.63% in the previous month. Diesel, meanwhile, remained largely stable at 17.74%, against 17.21% in August.The latest data comes as passenger vehicle retail reached a record 4,27,213 units in September, registering 32.10% year-on-year growth and a 6.17% increase over August. Both urban and rural markets recorded almost identical annual growth, at 32.11% and 32.09%, respectively. The fuel-mix trend also comes against a broader increase in electric vehicle adoption. Total EV retail across vehicle categories reached an all-time monthly high of around 3.34 lakh units in September, taking overall EV penetration to roughly 13%. In the two-wheeler segment, EVs accounted for 11.58% of retail, while electric three-wheelers continued to dominate their segment with a 64.90% share.However, petrol’s September recovery suggests that the Indian passenger vehicle market is not moving towards a single replacement fuel at a uniform pace. CNG remains the largest alternative-fuel choice in passenger vehicles, while hybrids and EVs continue to gain ground. The September numbers instead point to a market where consumers are increasingly choosing between multiple powertrain options. FADA said the fuel-mix movement should be viewed alongside the affordability equation. The industry body noted that further vehicle price increases could erode part of the affordability benefit created by GST 2.0, making pricing an important factor as the festive season gathers pace.With October bringing Navratri and Dussehra, the next month could provide a clearer indication of whether the fuel-mix balance begins to shift decisively towards alternative powertrains or remains a closely contested market. FADA expects the festive period to drive stronger passenger vehicle booking-to-retail conversion, although it has flagged price increases and inventory levels as key factors to watch.Subscribe to Auto Today Magazine - Ends