Alternative-fuel passenger vehicles, combining compressed natural gas, hybrid and electric models, captured about 42% of India’s passenger-car market in August, surpassing petrol-powered cars at around 41% for the first time. CNG accounted for 25%, hybrids 9% and electric vehicles 8%, with each category growing from a year earlier. Total passenger-vehicle sales rose 16% year-on-year to a record 402,398 units for August, while overall automotive retail sales increased 17.5% to 2.4 million vehicles. Higher fuel prices, Middle East tensions and consumer concerns about the transition from E10 to E20 petrol have supported demand for vehicles with lower running costs. The ethanol policy, intended to reduce India’s reliance on imported crude, has drawn criticism from owners of older vehicles worried about fuel economy and engine performance. India imports roughly 90% of its crude oil, and automakers including Toyota Motor, Suzuki Motor, Tata Motors and Mahindra & Mahindra are expanding hybrid, CNG and electric offerings. The government’s handling of E20 and its broader fuel policy will remain important for the market’s next phase.