CNG, hybrid & electric cars propel India's passenger vehicle retail sales in June, reveals FADA data

India's passenger vehicle retail sales witnessed nearly 29% year-on-year (YoY) growth in June 2026, while alternative fuel-powered vehicles propelled the momentum, amid the fuel price hikes in the wake of the Middle East conflict. The Federation of Automobile Dealers Associations (FADA), the apex body of automobile dealers in India, on Monday revealed that India's car retail sales rose 28.6% in June 2026, as compared to the year-ago period.

The FADA data has revealed that in June 2026, the Indian car retail sales were 410,853 units, up by 28.63% from 319,412 units recorded in the same month last year. The month-on-month (MoM) sales also increased by 2.05%, as in May this year, the retail PV sales were 402,591 units. Between April and June this year, the Indian passenger vehicle market recorded 12,55,933 units, as compared to 10,24,101 units, marking a 22.64% YoY growth.

The alternative fuel-powered vehicles, including the CNG, hybrid and electric cars, propelled the growth significantly, as these vehicles' share in total sales crossed the 40% threshold for the first time, recording a 40.35% stake. The CNG cars contributed 24.33% to the total sales, while the hybrids contributed 8.27%. The pure electric cars contributed 7.75% to the total PV sales in India last month.

This surge in the retail sales of CNG, hybrid and electric cars came after the Indian government raised petrol and diesel prices at least four times in May 2026, citing the soaring crude oil prices that were linked to the Middle East conflict. Besides that, the growing confusion and uncertainties around the ethanol-blended petrol have propelled many customers to opt for these alternative fuel-powered vehicles. Maruti Suzuki, the number one carmaker in India, in terms of manufacturing and sales, said last month that bookings for its CNG cars surged by 40% since the fuel price hikes.

Check out Upcoming Cars in India 2026, Best SUVs in India.