July 6 (Reuters) – India’s retail car sales rose 28.6% from a year earlier in June, with vehicles powered by compressed natural gas and other alternative fuels accounting for a record 40.4% of total sales, after fuel prices rose in the wake of the Iran war, the Federation of Automobile Dealers Associations said on Monday.
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Overall vehicle sales rose 21.8% to 2.6 million units, the highest ever for June, driven by strong demand for passenger vehicles and two-wheelers, the industry body said
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Car sales rose to 410,853 units, with sales of CNG vehicles making up 24.3% of the total, hybrid vehicles accounting for 8.3% and electric vehicles contributing 7.8%, FADA said
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Demand for alternative-fuel-powered cars has surged after India raised petrol and diesel prices at least four times during May to offset losses from soaring crude oil costs linked to the Middle East conflict
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Industry leader Maruti Suzuki (MRTI.NS), said last month that bookings for its CNG cars jumped 40% since the fuel price hikes
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In June, total two-wheeler sales climbed 21.2% year-on-year to 1.8 million units, FADA said
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Share of electric two-wheelers rose to 10.6%, hitting the double-digit mark for the first time, it said
Reporting by Kashish Tandon in Bengaluru; Editing by Rashmi Aich and Mrigank Dhaniwala.
