For the second year in a row, CNG was the second most popular fuel type in India’s passenger vehicle (PV) market in FY2026, with its share rising to 21.98 percent, up from 19.60 percent in FY2025. In comparison, diesel accounted for 18.08 percent of PV sales, while electric vehicles made up 4.25 percent. Petrol continued to lead the market, although its share declined to 47.48 percent from 50.82 percent in the previous financial year.
In absolute terms, of the 47,05,056 passenger vehicles sold in FY2026, around 10.34 lakh units were CNG models. Nearly one in four cars sold in the country now runs on compressed natural gas. CNG adoption has grown steadily in recent years, rising from around 12-13 percent three years ago to nearly 22 percent now.
- CNG share has nearly doubled from three years ago
- Expanding CNG network now covers over 600 cities
Market share by fuel type
Lower costs and wider availability boost CNG demand
The shift towards CNG has been driven largely by lower running costs. CNG typically costs 40-50 percent less than petrol per kilometre, while the price difference between petrol and factory-fitted CNG variants has hovered around Rs 80,000-1 lakh.
For buyers covering 15,000-20,000km annually, the additional cost can be recovered in under 18 months, making CNG an attractive option in the mass-market segment.
The growth in CNG adoption has also been supported by expanding infrastructure. City gas distribution networks now cover over 600 cities, up from around 300 three years ago, improving accessibility in key markets.
At the same time, rising fuel prices have influenced buying decisions. According to FADA’s dealer survey, 36.5 percent of dealers reported that rising or expected fuel prices are affecting customer purchase decisions, while 56.9 percent reported increasing interest in CNG and EV options.
Carmakers expand CNG portfolios across segments
Carmakers have expanded their CNG offerings across segments. Maruti Suzuki offers factory-fitted CNG options across most of its range, while Tata Motors has added CNG variants to models such as the Nexon, Punch, Tiago and Altroz, offering CNG even in higher, feature-rich trims, with its CNG volumes crossing 1.72 lakh units in FY2026, up 24 percent year-on-year, and accounting for around 27 percent of its domestic sales. Hyundai also offers CNG options on select models, including the Grand i10 Nios, Aura and Exter. This has widened buyer choice, with CNG options now available across a price range of roughly Rs 5 lakh to Rs 15 lakh.
Suraj Viswanathan
Viraaj Bhatnagar
Glenn Noronha
Uday Singh
