India’s fleet market is increasingly consolidating around CNG-powered vehicles, with Maruti Suzuki strengthening its dominance even as Hyundai emerges as the only credible challenger. Latest JATO Dynamics registration data for FY26 highlights a clear pecking order among automakers, alongside a sharp divergence in fuel preferences between fleet operators and private buyers.
CNG fleet registrations at Maruti rise 24% YoY widening lead over rivals. The company recorded 199,883 CNG fleet registrations in FY26, up from 161,590 units in FY25. Including 46,855 units from other fuels, its total fleet volumes stood at nearly 2.47 lakh units, making it the undisputed leader. This is driven by its dedicated “Tour” range fleet-focused versions of the WagonR, Eeco, Ertiga and Dzire supported by a wide service network and strong resale value.
Hyundai ranks a distant second but is gaining momentum. The carmaker reported 34,064 CNG fleet registrations in FY26, up sharply from 22,210 units a year earlier. Non-CNG fleet volumes remained limited at 1,587 units, reflecting a clear CNG-led strategy. Models such as the Prime HB and the Prime SD based on the Aura and Grand i10 respectively, are increasingly being adopted by fleet operators, positioning Hyundai as the fastest-growing challenger to Maruti.
Toyota holds the third position, with a stronger presence in premium fleet applications. It registered 8,353 CNG units and 9,531 units from other fuels in FY26 under the fleet category. The brand continues to dominate higher-end segments such as airport transfers with the Innova range, while also leveraging rebadged Maruti models to expand its reach.
In contrast, Tata Motors and Mahindra & Mahindra lag significantly in the CNG powered fleet space. Tata recorded just 233 registrations, alongside 5,134 units from other fuels. Mahindra had negligible presence in CNG fleets and 22,652 units in other fuel categories. Despite their strength in the broader passenger vehicle market, both companies have struggled to gain traction in fleet-oriented CNG offerings.
Economics vs. Performance
A key trend is the overwhelming dominance of CNG in the fleet segment. For Maruti Suzuki, over 80% of fleet volumes come from CNG models, while Hyundai’s share exceeds 90%, underscoring the fuel’s cost advantage for high-utilisation vehicles. Toyota shows a more balanced mix, reflecting its positioning across segments.
This contrasts sharply with the private vehicle market, where petrol and diesel continue to dominate. Maruti Suzuki recorded over 1.12 million private registrations from non-CNG fuels, compared to 508,015 CNG units in FY26. Hyundai and Tata show similar trends, with significantly higher volumes in conventional fuels than CNG. The divergence highlights a two-speed market clearly showing fleet operators opting for CNG due to economics, while private buyers prioritise convenience and performance.
Electric Mobility Awaits
While CNG remains the backbone of the fleet segment, automakers are also exploring electric mobility. Tata Motors and Mahindra have introduced EVs such as the Nexon EV and XUV400, but their presence in fleet segment remains limited.
New entrants and global players are also eyeing the space. MG Motor is targeting fleet applications with models like the ZS EV and Windsor-based Commute EV. BYD is focusing on premium electric fleet offerings, while Kia is preparing entry with upcoming EVs. VinFast, which has announced its India entry, is expected to introduce models such as the VF MPV7 along with fleet-focused variants and potential ride-hailing plans.
However, EV adoption in taxis continues to face challenges, including high upfront costs, limited charging infrastructure and concerns around utilisation. As a result, CNG is likely to remain the preferred transition fuel in the near to medium term.
