Passenger vehicle retail sales increased 19% year-on-year to 4.1 lakh units, crossing the four-lakh mark for the first time in July

NEW DELHI: Alternative-fuel passenger vehicles are on the verge of overtaking petrol-powered models in India, with CNG, hybrid and electric vehicles accounting for 40.6% of passenger vehicle retail sales in July, just behind petrolâs 41.7%, according to data released by the Federation of Automobile Dealers Associations (FADA) Thursday. The gap has narrowed sharply from 13.2 percentage points a year ago to just over a percentage point, reflecting a rapid shift in buyer preferences.

Petrolâs share, meanwhile, declined to 41.6% from 47.6% a year earlier. FADA said fresh model launches, affordability gains following GST changes and consumersâ increasing focus on lower running costs supported demand for alternative powertrains. The dealersâ body also noted that uncertainty surrounding the transition to E20 fuel appears to have nudged some buyers towards CNG, hybrid and EVs.