New Delhi, July 8 -- Electric vehicles are gaining ground fast in key city gas areas and the surge is starting to eat into CNG market share and could weigh on long-term PNG demand too, according to a report by brokerage firm Dolat Capital. This comes in contrast to City Gas Distributors cutting prices to defend market share against propane.

According to Dolat Capital's research report, CNG registrations are still rising across geographical areas (GA) of Mahanagar Gas, Indraprastha Gas, and Gujarat Energy but EV growth is now outpacing it in some geographies.

"The Pace of EV registrations has improved significantly in 1HCY26 while in some GAs it has crossed the CNG," the report said.

The impact is clearest in MAHGL's areas. "EV adoption...