CNG and EV cars hit record 40% of new sales in June

New Delhi: Cars powered by compressed natural gas (CNG) and electricity made up a record 40% of all passenger vehicle sales in India in June, according to industry data reported by The Times of India.

The number marks the highest combined share ever for these alternative-fuel vehicles. It comes as automakers push more models and the government keeps subsidies alive for electric cars.

CNG leads the charge

CNG cars accounted for the bulk of the jump. Sales of CNG models rose 32% in June compared to the same month last year. Maruti Suzuki, India's biggest carmaker, drove much of that growth. Its models like the WagonR and Ertiga now come with factory-fitted CNG kits.

Buyers are drawn to CNG's lower running costs. At current prices, CNG costs roughly half as much per kilometer as petrol. The fuel also burns cleaner, producing fewer nitrogen oxides than diesel.

Still, CNG has limits. The refueling network remains thin outside big cities. And the fuel is compressed methane, a potent greenhouse gas if it leaks from pumps or pipes.

EVs keep growing

Electric cars made up a smaller but rising slice of the 40% pie. EV sales jumped 87% in June year-on-year. Tata Motors and MG Motor led the segment with models like the Nexon EV and ZS EV.

Government subsidies under the FAME-II scheme helped keep prices down. State-level road tax waivers also cut the upfront cost for buyers. But EVs still face hurdles: high purchase prices, patchy charging infrastructure, and range anxiety among many first-time buyers.

Petrol and diesel cars still made up the remaining 60% of sales. Their share has been falling steadily. Five years ago, they accounted for more than 90% of the market.

Policy and infrastructure gaps

The shift comes as India aims to cut its oil import bill and lower carbon emissions. The government has set a target of 30% EV sales for new private cars by 2030. It has also pushed CNG as a transition fuel, expanding the city gas distribution network to over 400 districts.

But analysts warn that the 40% figure masks regional imbalances. In states like Delhi and Gujarat, CNG and EV sales are high. In others, like Uttar Pradesh and Bihar, they lag far behind.

"The numbers are encouraging, but the base is still small," said an industry analyst who asked not to be named. "Sustaining this growth will need more charging stations and a bigger CNG pipeline network."

Carmakers are responding. Hyundai plans to launch a new electric SUV later this year. Maruti Suzuki has said it will double its CNG model lineup by 2025. Tata Motors is building a dedicated EV plant in Tamil Nadu.

For now, the June sales data offers a snapshot of a market in transition. Petrol and diesel remain dominant. But their grip is loosening, month by month.