Petrol is the only fuel type to lose market share in 2025, dropping from 59.4 percent to 53.3 percent, even as overall passenger vehicle sales rise to expected 45.8 lakh units, about 6 percent higher than 2024. CNG, EVs, diesel and hybrids all gain ground, suggesting buyers are looking beyond petrol for lower running costs.
Market share by fuel type
| Fuel Type | 2024 | 2025 |
| Petrol | 59.44% | 53.27% |
| Diesel | 17.93% | 18.33% |
| CNG | 17.76% | 21.15% |
| EV | 2.55% | 4.61% |
| Hybrid | 2.32% | 2.64% |
| PHEV | 0.003% | 0.002% |
Petrol share slips as buyers weigh running costs
E20 rollout raises efficiency concerns among buyers
Petrol remains the most common fuel type in India, but its market share drops as more buyers consider alternatives. In absolute terms, about 1.3 lakh fewer petrol cars were sold compared to 2024. The wider rollout of E20 petrol has also led to slightly lower real-world efficiency, prompting some buyers to look at other alternative fuel types more closely.
Diesel demand remains stable
SUVs keep diesel relevant in 2025
Despite concerns over long-term viability, diesel market share edges up to 18.3 percent in 2025, supported mainly by SUV demand. While many brands have reduced diesel options in smaller cars, the fuel type remains common in midsize and ladder-frame SUVs, which helps keep demand stable.Â
Mahindra’s diesel SUVs – Thar, Scorpio N, Bolero and the XUV range, remain key sellers in their respective segments, along with diesel offerings from Toyota, Hyundai and Tata. This consistent demand for diesel SUVs has also helped Mahindra seal the second spot in 2025 car sales as buyers continue to choose diesel in larger vehicles.
CNG posts strongest growth
Lower running costs drive urban demand
CNG sees the biggest jump, rising from 17.8 percent to 21.2 percent of the market. The increase is supported by factory-fitted CNG options across entry level models, especially from Maruti Suzuki and Tata, giving buyers familiar cars with lower running costs.Â
Once seen mainly as a budget alternative, CNG is now a mainstream choice for regular city use thanks to wider availability and predictable fuel costs.
EV share nearly doubles
Charging access still limits wider uptake
EVs move from 2.6 percent to 4.6 percent of the market in 2025, nearly doubling their share, though overall volumes remain limited. Growth is supported by new launches offering improved real-world range, with EVs accounting for over 40 percent of all new models introduced in 2025.
Charging access outside major cities still slows wider adoption, but EVs show the fastest rate of increase among all fuel types, reflecting strong demand in areas with adequate charging access.
Hybrids grow gradually
Hybrid sales driven by a small model range
Hybrid share moves from 2.3 percent to 2.6 percent in 2025. The increase is led by steady demand for models like the Toyota Innova Hycross and Maruti Suzuki Grand Vitara, which offer better fuel efficiency than petrol. Growth remains modest as the number of hybrid models on sale is limited.
