The share of alternative fuels was at 41.95 per cent in August 2026, when compared to 40.85 per cent of petrol variants.
Among the alternative fuel categories CNG accounted for 25.28 per cent, hybrid was at 9.04 per cent and electric vehicle was at 7.63 per cent.
A little over a year ago petrol led the contest by nearly eleven percentage points; that lead has now been erased, FADA said.
However, the industry body said much of the year on year strength rests on a soft August 2025 base, when buyers had deferred purchases awaiting the GST 2.0 rate cut, and dealers report that the festive curtain-raiser came in below their own expectations.
The true test of the season lies in showroom conversion through September to November, not in year-on-year optics, it said.
Petrol still remains the single largest individual fuel, FADA said.
Dealers attribute the shift to running-cost economics and continuing consumer hesitation around the E20 transition, which is nudging petrol buyers towards CNG, hybrids and EVs, it noted.
Overall Passenger Vehicle retails were 4,02,398 units, up 16.14 per cent year on year— the best-ever August and the first time category has crossed the 4-lakh mark in an August — though 3.40 per cent lower month on month, FADA said.
Passenger Vehicles enter September with fresh launches and healthy pipelines but must convert them against elevated inventory and a demanding base, it added.
