EVs, CNG gain ground as India's automobile fuel mix steadily shifts

India's automobile fuel mix is changing. Electric vehicles and CNG-powered vehicles are gaining ground, according to a Business Standard report published on September 22, 2026. The shift is gradual, but it's real.

The story, based on industry data, shows that while petrol and diesel remain the dominant fuels, their share is slowly eroding. EVs and CNG are picking up the slack. The report doesn't specify exact percentages or year-on-year growth rates, but the direction is clear.

This isn't a sudden jolt. It's a steady grind. CNG has been expanding through city bus fleets and commercial vehicles for years. EVs, meanwhile, have moved from a niche curiosity to a visible presence on Indian streets, especially two- and three-wheelers.

Several factors are driving the change. Government policies like the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme and production-linked incentives have helped. So has a push for cleaner air in cities. CNG infrastructure has grown, with more filling stations in major urban centres. EV charging networks are still patchy but improving.

The Business Standard report doesn't name specific companies or models. It sticks to the broad trend. That's fine. The trend itself is the story.

What does this mean for the average Indian driver? Not much yet. Petrol and diesel pumps still outnumber CNG stations and EV chargers by a wide margin. But the gap is narrowing. For fleet operators, the math is already shifting. CNG buses and electric three-wheelers can be cheaper to run, even if upfront costs are higher.

The shift also has implications for oil imports. India imports over 80% of its crude oil. Every EV or CNG vehicle on the road chips away at that dependence, even if only slightly. The report doesn't quantify the impact, but the logic is straightforward.

Automakers are responding. Most major manufacturers now offer CNG variants of their popular models. Tata Motors, Mahindra, and others have EV plans. The transition isn't uniform across segments. Passenger cars are still mostly petrol and diesel. Two-wheelers are seeing faster EV adoption. Buses are a mixed bag.

The Business Standard piece doesn't offer forecasts. It doesn't say when EVs or CNG might overtake conventional fuels. That's probably wise. Predictions in this space have been wrong before. What matters is the direction of travel.

For now, the fuel mix is shifting. Slowly, unevenly, but undeniably. The next few years will show whether this pace holds or accelerates. The data will tell.