CNG, electric vehicles see surge in enquiries in May after fuel price hike

Automobile dealers in India have witnessed a surge in enquiries for fuel-efficient and cleaner powertrain-technology-driven vehicles in May 2026. This came amid a series of price hikes announced for petrol, diesel and CNG by the oil marketing companies in the country. According to the Federation of Automobile Dealers Associations (FADA), this was a noticeable shift in consumer interest towards fuel-efficient and alternative powertrain-propelled vehicles across segments.

The dealers reported a surge in enquiries for alternative, cleaner powertrain technology-aided passenger vehicles and electric two-wheelers. The apex dealer body stated that a notable feature of May 2026 was the consumer response to the May fuel-price revision. "Dealers reported a visible rise in enquiries for fuel-efficient and alternative-powertrain options, reflected in the 2W EV share climbing to 9.25% from 6.11% a year ago," FADA stated.

EV sales penetration crosses 11%

Last month, India's overall automobile retail sales also recorded the highest May numbers at 25.31 lakh units, climbing up by 9.55%. In the total passenger vehicle sales, the CNG-powered vehicles contributed 23.34%, while the electric cars contributed 6.63%. In the two-wheeler segment, enquiries for electric two-wheelers increased to 9.25% from 6.11% registered a year ago, FADA said. In the commercial vehicle segment, electric vehicles contributed 2.86%. Overall, electric vehicle penetration in Indian automobile market crossed 11% for the very first time.

FADA hopeful for the momentum to continue

FADA is hopeful that this momentum will continue, especially in favour of the electric and other cleaner powertrain technology-powered vehicles. Looking at the June to August period, dealer confidence looks firm, with 59.07% now expecting growth - a meaningful improvement that signals greater conviction in the medium-term demand pulse as the monsoon advances, FADA stated.

The dealer body also said that passenger vehicles are likely to draw a healthy number of bookings, especially in the EV segment. In the two-wheeler segment as well, the shift in enquiries for electric vehicles is expected to continue.

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