NEW DELHI: India’s automobile retail market recorded its best-ever August performance, with total vehicle registrations reaching 24,23,201 units, up 17.51% year-on-year, according to data released by the Federation of Automobile Dealers Associations (FADA).

A major shift was recorded in the passenger vehicle segment, where CNG, hybrid and electric vehicles together surpassed petrol-powered cars for the first time. Alternative-fuel vehicles accounted for 41.95% of passenger vehicle retail sales in August, compared with 40.85% for petrol vehicles.

Passenger vehicle retail sales crossed the four-lakh mark for the first time in August, reaching 4,02,398 units, representing a 16.14% year-on-year increase. CNG vehicles accounted for 25.28% of passenger vehicle sales, followed by hybrids at 9.04% and electric vehicles at 7.63%.

The broader electric vehicle market also continued to expand, with 2,98,448 EVs sold across categories, taking overall EV penetration to 12.3% during the month.

The shift comes amid rising fuel costs, growing consumer interest in fuel-efficient vehicles and increasing adoption of cleaner technologies. The trend also highlights changing preferences in India's automobile market, with buyers increasingly considering CNG, hybrid and electric powertrains alongside conventional petrol vehicles.

Despite the record annual growth, overall August retail sales declined 6.48% month-on-month, partly due to seasonal monsoon patterns and a shift in festive-season purchases towards September.