Alternative Fuel Vehicles Gain Momentum in India's Automotive Market

India's automotive sector continues to witness evolving consumer preferences, with alternative fuel vehicles including electric vehicles (EVs), hybrid vehicles, and CNG-powered vehicles accounting for a record share of the passenger vehicle market in June 2026. The trend reflects the growing adoption of cleaner mobility solutions, supported by improving product availability, expanding infrastructure, and evolving consumer preferences.

The increasing share of alternative fuel vehicles highlights the ongoing transformation of India's mobility ecosystem. Alongside conventional vehicles, consumers are gradually adopting technologies that offer greater fuel efficiency and lower emissions, contributing to the diversification of the country's automotive landscape.

The growth in alternative fuel vehicle adoption, but the broader evolution of India's automobile sector. Continued investments in vehicle technology, charging and fueling infrastructure, and manufacturing capabilities are supporting the development of a more diverse mobility ecosystem.

The latest trends indicate the continued evolution of India's automotive sector, with cleaner mobility solutions becoming an increasingly important part of the country's transportation landscape.

Source: Reuters. Data as on: 4th July 2026

*Portfolio allocation as on 30th June 2026. Allocations are subject to change based on portfolio positioning, investment decisions, and market conditions.

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