FADA: Petrol, Diesel and Hybrid vehicle sales take a dip in 2025

The passenger vehicle segment grew by leaps and bounds in 2025. As per the Federation of Automobile Dealers Association (FADA), the PV segment in India grew by 9.7 percent to 44,75,309. In addition to that, the two-wheeler segment in India grew by 7.24 percent to 2,02,95,650.

How did fuel preferences change in two-wheelers?

Additionally, FADA’s fuel-wise retail market split of each category stated that the two-wheeler segment in India witnessed increased adoption of electric two-wheelers. Petrol/ethanol two-wheelers held a market share of 93.49 percent in 2025 witnessing a slight dip from 93.72 percent in 2024. Electric vehicles witnessed a slight growth from 6.07 percent in 2024 to 6.31 percent in 2025. In addition to that, CNG/LPG vehicles, much like EV, witnessed a slight growth from 0.20 percent in 2024 to 0.21 percent in 2025.

December numbers show a sharper EV push

The electric two-wheeler segment grew to 7.4 percent share in December 2025 from 4.59 percent in November 2025 and 6.13 percent in December 2024. CNG/LPG two-wheelers remained stagnant at 0.11 percent, much like in November 2025. However, petrol/ethanol-powered two-wheelers witnessed a dip from its market share of 95.3 percent in November 2025 and 93.4 percent in the same month the previous year. The petrol/ethanol-powered two-wheelers made up only 92.49 percent of the market share in December 2025.

What’s driving the shift in passenger vehicles?

Furthermore, the passenger vehicle segment in India witnessed an increased adoption of electric vehicles and CNG/LPG, boasting 3.95 percent and 21.30 percent of the market share, respectively. Petrol/ethanol witnessed a major decline in adoption from 52.32 percent in 2024 to 48.52 percent in 2025. Notably, diesel vehicles and hybrid vehicles witnessed a slight decline with the former boasting a 18.02 percent market share and the latter boasting a 8.20 percent market share in 2025.

While petrol/ethanol maintained its majority at 50.39 percent in December 2025, it had witnessed a decline from 52.9 percent in December 2024. In addition to that, a similar trend can be observed when it comes to diesel. The Indian government’s strict norms to curb diesel cars has led to the decline of diesel vehicle adoption, making up only 16.09 percent in December 2025, facing a decline from 17.97 percent in November 2025.

Interestingly, CNG/LPG boasted a 21.03 percent market share in December 2025, a significant increase from 17.93 percent in December 2024. Moreover, electric vehicles boasted a market share of 3.94 percent in December 2025, growing from 3.09 percent in December 2024 and 3.75 percent in November 2025. Additionally, hybrid boasted a market share of 8.55 percent, a slight decline from 9.05 percent in December 2024.