New Delhi – India’s automotive landscape is undergoing a transformative shift, with electric vehicles (EVs) and compressed natural gas (CNG) models accelerating in popularity, according to the latest report from CarDekho Group’s New Auto segment. The report, which analyzes year-over-year (YoY) consumer trends from April 2023 to October 2024, highlights a significant move towards sustainable and cost-efficient mobility solutions in the country.
EVs Spark the Charge with 26% Growth
Leading the surge, EVs witnessed a remarkable 26% YoY increase in online traffic on the CarDekho platform. This upswing, starting mid-2024, was fueled by new EV launches, government incentives, and growing consumer interest in eco-friendly transportation. With consistent product rollouts and an expanding charging infrastructure, EVs are rapidly becoming the frontrunner in India’s transition to cleaner mobility.
CNG Overtakes Diesel with Strong Gains
CNG vehicles followed closely, marking a robust 17% YoY traffic growth and surpassing diesel in retail market share. Rising from 17% in October 2023 to 21% in October 2024, CNG’s growth reflects consumer demand for affordability and efficiency. Key CNG model launches in mid-2023 played a pivotal role in driving this trend. As diesel faces declining interest due to emission norms and rising costs, CNG emerges as a viable alternative for value-conscious buyers.
Hybrids Outshine Petrol with 80% Retail Growth
While petrol and hybrid vehicles saw a modest 3% combined traffic growth, the hybrid segment stole the spotlight with an extraordinary 80% surge in retail figures. In contrast, petrol models experienced a 3% decline in retail performance. This divergence signals a growing consumer preference for hybrid vehicles, which balance fuel efficiency with reduced emissions.
Diesel Declines Amid Regulatory Pressures
Diesel vehicles, once a dominant choice, recorded a 14% drop in platform traffic. Stricter emission norms, region-specific bans on older diesel models, and higher acquisition costs have steered consumers away. Legislative measures promoting cleaner fuel types and increasing safety standards for alternatives like CNG have further accelerated diesel’s decline.
A Market in Transition
Mayank Jain, CEO of New Auto (CarDekho Group), highlighted the significance of these shifts:
“India’s automotive market is evolving rapidly, driven by consumer demand for innovative and sustainable mobility solutions. The growth of EVs and CNG vehicles reflects a pivotal moment in the industry’s journey towards a dynamic and forward-thinking ecosystem.”
The Road Ahead
This evolution signifies a turning point for India’s automotive industry, with rising environmental awareness and cost efficiency shaping consumer choices. EVs, hybrids, and CNG vehicles are paving the way for a greener, more versatile future. As the industry adapts to meet these preferences, the stage is set for a transformative era in Indian mobility.
Whether it’s the silent hum of an EV or the cost-effective appeal of a CNG model, India is firmly on the road to cleaner and smarter transportation solutions.
