EV Share of 3-Wheeler Sales Jumps to 61%, CNG Falls to 24% in FY2026

The smart growth of India’s electric 3-wheeler industry, which continues to witness the fastest transition from conventional fuels to electric mobility amongst all vehicle segments, continues to eat into the CNG-powered 3W market. In FY2026, e-3W sales hit a record 830,819 units as compared to CNG 3Ws whose sales at 327,958 units (down 4% YoY) have dropped to their lowest level since FY2024 when they registered their highest sales. 

The electric 3W segment’s record retail sales in FY2026 have given the category a 61% market share – an additional 4% YoY – while that of CNG 3Ws dropped to 24% from 28% in FY2025.

As per Vahan data for FY2026, of the total 1.36 million 3Ws sold in India across all powertrains (electric, CNG, diesel, LPG and petrol), zero-emission electric 3Ws account for the bulk of them – 61% – clearly establishing their stranglehold over this vehicle segment.

Furthermore, the e-3W sub-segment is also the one to register the highest YoY growth (see FY2026 vs FY2025 data table above). The 19% YoY growth in sales has given it an additional 4% market share, increasing from the 57% it had in FY2025.

In comparison, CNG three-wheelers have lost exactly the same level of market share that 3W EVs have gained: 4 percent. The 4% decline in CNG 3W sales in FY2026 meant that this sub-segment delivered 12,630 fewer units to customers YoY (FY2025: 340,588 units).

Among the impediments to better adoption of CNG three-wheelers have been regular price hikes of this fuel which increase the total cost of vehicle ownership, which is critical in this vehicle category which caters to both passenger and cargo transport. As of today (April 4, 2026), CNG costs Rs 81 per kg in Mumbai, which is a Rs 4 per kg rise from the Rs 77 per kg rate (on December 20, 2025). In comparison, a litre of petrol costs Rs 103.49 and diesel Rs 90.01. 

In a highly price- and value-conscious market like India, which have scores of individual-owned 3Ws and a growing number of last-mile mobility fleet operators, the e-3W value proposition as compared to CNG and costlier petrol and diesel is hitting home.

When compared to electric 3Ws, CNG loses out on the zero-emission wallet-friendly alternative. EVs offer a much lower running cost per kilometre of around Rs 1.40 per kilometre with a 90-120km range on a full charge. Meanwhile, a CNG 3W has an estimated running cost of around Rs 1.40 per kilometre, which works out to a 140% increase compared to an e-3W.

Meanwhile, in FY2026, diesel-engined 3W sales (166,045 units) rose by 20% YoY. This sees the diesel 3W share improve marginally to 12% from 11% in FY2025. LPG-fuelled 3W sales (33,226 units) were down 1% YoY with the LPG 3W market share falling to 2 percent. Ethanol-fueled 3Ws (3,004 units) sold more than the 2,227 petrol-engined 3Ws (down 75% YoY), which is understandable given the wallet-busting cost of this fossil fuel.

Shifting market dynamics after BS VI kicked in sees diesel share whittle down to 12% from 41% in FY2021. E-3Ws now rule the market with a 61% share while CNG share has dropped to 24%. 

Electric 3W Share at Its Highest in FY2026, CNG at Lowest Since FY2023

A deep dive into the 3W industry’s sales since FY2020 reveals some interesting takeaways. Total 3W sales across all powertrains have risen 68% over the past seven years from 812,494 units in FY2020 to 13,63,278 units in FY2026.

The shifting market dynamics, particularly after BS 6 emission norms kicked in from April 2020, show that diesel which had the largest share – 41% – of the 3W market in FY2021 has whittled down to just 12% in FY2026. While expensive petrol was never a draw for 3W buyers, the combined electric and CNG share of 3Ws has risen from 41% in FY2020 to 85% in FY2026. 

The rapid advance of the e-3W segment, can be seen from its speedy growth particularly since FY2023 when it crossed the 400,000 retail sales milestone for the first time and accounted for every second 3W of the total 785,094 units sold in India. Demand continued to rise over the next three fiscals and in FY2026 the e-3W industry doubled its FY2023 volume to surpass the 800,000 milestone for the first time. 

In comparison, the CNG-powered 3W segment which registered its highest sales in FY2024 (356,284 units) for a 30% share of the 1.16 million 3Ws sold, sees its share of the overall 3W market progressively reduce to 28% in FY2025 and to 24% in FY2026.

The CNG 3W segment’s performance in the past fiscal gives it the lowest share (24%) since FY2023 when it contributed to 31% of the 3W industry sales of 785,094. Will electric 3Ws continue to take away buyers from the CNG segment in FY2027? Watch this space as we bring you the latest sales updates and analyses.

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