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Automakers widen powertrain bets

By Sohail Khan 30 August 2026, 5:30 am

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Automakers widen powertrain bets as petrol dominance weakens
Synopsis

Indian automakers are expanding powertrain options as petrol's market share declines. New models offer electric, hybrid, and plug-in hybrid choices to consumers. CNG and diesel technologies also remain relevant in this evolving market. Carmakers are hedging bets due to buyer preference uncertainty. This complex transition offers customers diverse mobility pathways.

Petrol Price — New car launches offer more powertrain options as buyers turn more selective

Mumbai: MG just launched an SUV with both plug-in hybrid (PHEV) and electric powertrains, while Skoda is bringing the diesel Superb back to India. Hyundai is expanding its CNG portfolio while preparing new EVs, and Maruti Suzuki continues to back CNG alongside other options.

These launches and upcoming models point to an unusual phase in India’s automobile market — petrol’s dominance is weakening, but carmakers are widening, not narrowing, their powertrain bets. CNG, diesel, hybrids, EVs and now PHEVs are all competing for space, with the contest moving deeper into mass market.

Read more: Indian car buyers face difficult choices as automakers offer hundreds of variants across price points

In the backdrop of transition to ethanol-blended petrol, automakers appear to be hedging their bets rather than committing to a single successor to petrol, making India’s shift away from its dominant fuel a complex, and potentially costly, transition, say experts.

“The future of mobility will not be defined by a single technology solution but by providing customers the freedom to choose the pathway that best suits their needs,” JSW MG Motor India managing director Anurag Mehrotra said at the recent launch of the MG Hector Tomahawk, which is available in EV and PHEV variants.

What is emerging is not simply a transition from petrol to electric, but “a transition from one dominant powertrain to a much more fragmented market”, said Ravi Bhatia, president, Jato Dynamics. In other words, carmakers are buying optionality. “The challenge is that optionality is expensive; you have to invest today for several possible versions of tomorrow,” he said.

Uncertainty about what buyers will eventually choose is now being felt in product planning itself, a senior executive at a carmaker said. “You cannot assume that one technology will win across segments. The customer in a city, a highway user and a small-town buyer can have very different requirements.”

That is already playing out in the market. Petrol’s share fell in recent years, but buyers have not moved en masse to a single alternative. CNG gained ground, diesel remained relevant, EVs are growing and hybrids have found a sizeable niche, said industry executives.

Read more: Mid-size SUVs gain share in India as car buyers move to bigger vehicles

A Delhi-based dealer said customers were increasingly asking about several technologies before making a purchase. “Earlier the conversation was largely about petrol versus diesel. Now customers ask about CNG, hybrid and EVs, depending on their usage. Running cost matters, but so does convenience.”

The shift is forcing the industry to make difficult calls. Engine programmes, battery capacity, platforms and supplier investments have to be planned years in advance, even as consumer preferences continue to evolve.

China offers a glimpse of how unpredictable that path can be. Its rapid electrification did not produce an immediate winner in battery-electric vehicles alone. Plug-in hybrids and range-extender vehicles gained momentum as consumers weighed driving range, charging availability and cost.

India is a different market, and the move away from petrol may not follow a straight line, said experts. For now, carmakers are keeping multiple technologies alive and waiting for the market to decide.

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