• CNG vehicles experienced a 17% YoY traffic growth, with CNG's retail market share rising from 17% to 21%, overtaking diesel.
• Petrol and Hybrid vehicles showed a modest 3% YoY traffic increase, with hybrid vehicles seeing an impressive 80% YoY retail growth

December, 10th, 2024: CarDekho Group's New Auto segment, the leading platform for automotive content and solutions, has unveiled its latest report on changing customer preferences in the automobiles’ fuel-type trends. Analyzing the evolving consumer behavior and preferences in India’s automotive market, the report captures unique user trends with key highlights from the year-over-year (YoY) comparison between Apr'23-Oct'23 and Apr'24-Oct'24, showcasing shifts in traffic patterns across various fuel types on the CarDekho platform.

Electric vehicles (EVs) have shown exceptional growth leading the chart, recording a 26% year-over-year (YoY) increase in platform traffic. This surge began in July 2024 following multiple EV launch announcements and maintained momentum through September 2024, driven by regular product rollouts. The findings reflect a growing consumer shift towards environmentally friendly mobility solutions and an expanding EV ecosystem in India.

The CNG segment also registered a robust 17% YoY growth in traffic, further strengthening its place as the second most popular fuel choice after petrol. Traffic on CNG model pages spiked during June-July 2023, coinciding with the launch of key models with CNG variants. This momentum translated into a rise in CNG's retail market share from 17% in October 2023 to 21% in October 2024, overtaking diesel as the second-most preferred fuel type.

Petrol and Hybrid vehicles collectively saw a modest 3% YoY growth in platform traffic. However, the report underscores contrasting trends within the segment: petrol vehicle retail figures declined by 3%, while hybrid vehicles surged with an impressive 80% YoY retail growth. These figures reflect a consumer inclination toward alternatives offering better fuel efficiency and lower running costs.

“India's automotive market is witnessing an evolution marked by changing consumer preferences. The surge in EV popularity highlights a shift towards innovative and sustainable mobility. Similarly, the growth in CNG vehicles has been significantly driven by advancements such as high-quality and safe factory fitments and growing advancements in engine technology. These trends reveal not just a changing market but a transition in the automotive sector. This pivotal moment reflects the industry's readiness to embrace a more dynamic and forward-thinking automotive ecosystem in India,” said Mayank Jain, CEO of New Auto (CarDekho Group).

As for the diesel vehicles, the report found that it recorded a 14% YoY decline in platform traffic. This decline can be attributed to factors such as stricter emission norms, 10-year usage bans in certain regions, and increased purchase costs. Legislative measures, aimed at curbing emissions and promoting cleaner alternatives, including safety and compliance requirements for CNG vehicles have further accelerated this trend. Therefore, once prized for their lower running costs, diesel vehicles are now being outpaced by EVs, hybrids, and CNG vehicles, which offer greater affordability and sustainability.

The evolving preferences of Indian consumers reveal a dynamic shift in the automotive market. Rising interest in electric and CNG vehicles highlights a move towards innovative, versatile fuel options. Driven by environmental awareness and cost efficiency, industry is entering a new era of growth, aligning with changing consumer priorities.

About CarDekho Group

Founded in 2008, CarDekho Group is one of the leading Autotech & finance solution platforms with nearly 60mn MU. A $1.2 billion valuation Unicorn, CarDekho Group operates companies in Insurtech (InsuranceDekho, India’s #1 B2B2C), Fintech (rupyy, one of the leading lending Fintech platforms), Shared mobility space (Revv) & also operates India’s leading automobile content portals such as CarDekho.com, BikeDekho, ZigWheels, Powerdrift etc. Being environmentally conscious and a firm believer of sustainable development, the CarDekho group has pledged to become carbon neutral by 2050 under the United Nations framework and has also adopted 5 UNSDG goals. CarDekho Group is backed by marquee investors like Peak XV(Sequoia), Hillhouse Capital, CapitalG, Ratan Tata Trust, Leapfrog (ESG-focused investment fund), HDFC Bank, ICICI Bank, and Axis Bank, amongst others.