Alternative-fuel passenger vehicles captured a record 40.2% share of retail sales in India in June, up sharply from 33.3% a year earlier, according to the Federation of Automobile Dealers Associations. Compressed natural gas remained the largest contributor at 24.3%, with hybrids at 8.3% and electric vehicles at 7.8%, pushing the combined petrol-diesel share below 60% for the first time. The milestone came in a month when overall retail sales rose 28.6% year-on-year to 410,853 units, the highest ever for June, with rural markets outpacing cities even as a delayed monsoon moderated demand.

Across Latin America, the shift is accelerating through different pathways. In Colombia, 24,477 electric and 44,605 hybrid vehicles were registered in the first half of 2026, a leap of 235.5% and 74.6% respectively versus the same period last year, per industry groups Andi and Fenalco. Together they accounted for nearly four in ten new cars, with Tesla commanding 41.5% of the electric segment and BYD 23.6%. Brazil’s new-vehicle market had its best semester in 15 years, with 2.7 million units sold, a 16% rise, as a growing number of manufacturers spurred aggressive discounting despite high interest rates. Electric models tripled their registrations, aided by a federal tax-reduction programme. In Argentina, where overall sales fell 9.9%, Honda countered the trend with a 45.2% increase, offering zero-interest financing and discounts of up to US$5,000 on selected hybrids.

Beneath the growth, frictions are emerging. Petrol dealers in India’s Odisha state have urged the government to review the nationwide rollout of E20 fuel, citing carburettor clogging and compatibility complaints from owners of vehicles not designed for a 20% ethanol blend. Dealer margins, they say, have not been revised since 2024 despite a promise of six-monthly reviews. In Delhi, auto-rickshaw drivers who lived through the abrupt 2000 switch to CNG—marked by long queues and scarce refuelling stations—now watch the electric transition with caution, noting that charging infrastructure remains inadequate and battery replacement costs are a worry, even though over half of new three-wheelers sold nationally are electric.

Used-vehicle markets are sending their own signals. In Brazil, the IBV Auto index recorded a 3.49% price rise for used cars in the first half, but electric models are depreciating far faster: 2023 electrics lost 46.1% of their value by June 2026, compared with 19.6% for combustion-engine equivalents, a gap that reflects rapid new-model introductions and aggressive pricing by manufacturers. The next milestones to watch include the Indian government’s response to dealer calls for an E20 review, the expansion of public charging networks in Colombian and Indian cities, and whether the financing incentives in Argentina can sustain sales momentum as the market contracts.