With an extensive push towards greener mobility solutions by the Government of India, the Indian automotive industry has witnessed a growth in alternative fuels and energy solutions. While people might think electric vehicles may be driving the push for alternate fuels in India when it is actually CNG that is the most favoured alternate fuel.
Gujarat is the finest example of this where for the first time in the state’s history, sales of CNG vehicles went past petrol-powered vehicles. According to a Times of India report, sales of CNG and petrol-CNG cars touched 1.25 lakh in FY25. During the same period, sales of petrol cars stood at 1.18 lakh units. This data has reportedly been taken from the Union ministry of road transport and highways (MoRTH).
The transition indicates changing consumer priorities from performance to fuel efficiency. As fuel prices rise, buyers are looking for smarter and cheaper ways to commute. This trend marks a notable reversal from FY 2021, when petrol car sales stood at 1.39 lakh units, significantly higher than the 40,560 CNG vehicles sold. The shift is attributed to rising fuel prices, increased availability of factory-fitted CNG variants, and the cost-effectiveness of CNG as a fuel.
Pranav Shah, Chairperson of the Federation of Automobile Dealers’ Association (FADA) in Gujarat, noted that diesel vehicles remain popular among SUV owners due to their performance, but CNG variants are preferred for their better range and reliability in smaller cars and sedans.
Why CNG outclasses petrol?
Industry experts highlight that the flexibility offered by petrol-CNG dual-fuel vehicles is a significant factor driving this trend. These vehicles allow consumers to switch between fuels, optimizing cost savings and convenience. The expanding infrastructure of CNG stations across Gujarat further supports this shift, making CNG a more accessible and viable option for daily commuters.
The rise in CNG vehicle sales is also supported by the growing number of models offering factory-fitted CNG kits, providing consumers with flexible fuel options and lower operational costs. This trend is evident even among entry-level SUV buyers considering CNG options.Â
While diesel car sales have remained stable, with over 73,000 units sold, petrol car sales have declined from nearly 1.55 lakh units in FY 2023 to under 1.19 lakh units in FY 2025. Electric and hybrid vehicles are gradually gaining traction, with hybrid car sales increasing to 6,300 units and electric vehicle sales reaching around 6,200 units.
Gujarat’s automotive market is clearly shifting towards more economical and environmentally friendly options, with CNG vehicles leading the way. As infrastructure and model availability continue to improve, this trend is expected to strengthen further.
