Carmakers fuel up for India’s multi-engine future

Petrol Diesel — Car manufacturers are expanding powertrain offerings by introducing electric, CNG, hybrid, and petrol options

New Delhi | Mumbai: Choked by rising fuel prices and stricter emission norms, carmakers are broadening their powertrain offerings beyond petrol and diesel to onboarding regional preferences to help buyers manage running costs.

The shift is particularly pronounced among European manufacturers such as Renault and Volkswagen Group that will now offer electric and CNG options with its line-up of upcoming models.

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Petrol-powered cars accounted for 41% of overall car sales last month, down from 47% in September 2025, while the combined share of CNG, hybrid and electric vehicles rose to 41% from 35% in the same period, the Federation of Automobile Dealers Associations (FADA) data showed.

Engine evolution

Renault Group India chief executive Stephane Deblaise said expanding market coverage now depends as much on offering the right engines as introducing new models. He conceded that narrow engine choices skimped sales of its new Duster.

"If I look at the market coverage in India, it is as much a question of engines as a question of cars," he told ET.

A year ago, Renault's Kwid, Kiger and Triber covered at its most 30% of the market, he said. With a wider range of vehicles and powertrains, the company aims to cover 80% over the next couple of years.

Regional preferences are a key consideration. In Mumbai, CNG accounts for about 40% of sales. "If you don't have CNG, you miss 40% of the market," Deblaise said. Before the pandemic, buyers largely chose between diesel and petrol. Today, CNG, hybrids and electric vehicles have expanded the choices. "You cannot be successful if you have only one or two engine types," he said.

Stellantis, another European manufacturer seeking to expand its presence in India, is pursuing a similar strategy. It plans to offer internal combustion engine vehicles, hybrids and battery electric vehicles across segments ranging from A to D, as well as minivans.

"We are giving customers more options by using our large global product portfolio in India," said Shailesh Hazela, CEO and managing director of Stellantis India. The company plans seven all-new models and five major upgrades, with the first launch scheduled for the second quarter of 2027.

The Skoda-led Volkswagen Group in India is evaluating the introduction of CNG and flex-fuel vehicles as tighter emission regulations push automakers to diversify their powertrain mix.

Mahindra & Mahindra, which already sells petrol, diesel and electric SUVs, entered the factory-fitted CNG market last week with the launch of the XUV 3XO ZNG. It is also betting on multi-energy platforms to offer more powertrain choices.

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Toyota Kirloskar executive Sabari Manohar said Toyota was pursuing a multi-pathway technology strategy, with the industry catching up on hybrids and plug-in hybrids.

"India is not a homogenous market," he said, citing differences in economic conditions and terrain across states.

CNG is also gaining acceptance in regions with adequate fuel availability. Customer feedback prompted Toyota to introduce automatic transmissions in its CNG models, Manohar said. Toyota has sold more than 300,000 hybrid vehicles. "In each segment, there are pockets of a market or a region where a drivetrain is good," he said. A drivetrain is the group of components in a vehicle or machine that delivers mechanical power from the engine or motor to the driven parts.

Tata Motors and Maruti Suzuki were early movers in offering multiple powertrains.