Sept 7 (Reuters) – Sales of alternative-fuel passenger vehicles, including compressed natural gas, hybrid and electric models, outpaced those of petrol-powered cars in India in August for the first time, the country’s auto dealers’ body said on Monday.
The shift reflected lower running costs for alternative-fuel vehicles and consumer uncertainty over the transition to E20 petrol, prompting buyers to consider CNG, hybrid and electric models, the Federation of Automobile Dealers Associations (FADA), which represents dealers of India’s leading car and two-wheeler makers, said.
India’s shift to E20 petrol, which contains 20% ethanol and is intended to reduce reliance on imported crude, from E10 has prompted consumer criticism, particularly among owners of older vehicles, over concerns that the higher ethanol content could reduce fuel economy and affect engine performance.
The mandate to use the blend, which came into force last year, has now become one of the biggest political flashpoints for Prime Minister Narendra Modi’s government and motorists in the world’s third-biggest car market.
The government earlier dismissed the backlash, calling it “wild claims” and asking people to not “fall for the rage bait”.
India’s shift to E20 petrol, which contains 20% ethanol and is intended to reduce reliance on imported crude, from E10 has prompted consumer criticism, particularly among owners of older vehicles, over concerns that the higher ethanol content could reduce fuel economy and affect engine performance.
The mandate to use the blend, which came into force last year, has now become one of the biggest political flashpoints for Prime Minister Narendra Modi’s government and motorists in the world’s third-biggest car market.
The government earlier dismissed the backlash, calling it “wild claims” and asking people to not “fall for the rage bait”.