New Delhi, June 16 -- India's hybrid car market is losing momentum as electric vehicles (EVs) pull ahead due to rising demand amid the West Asia war-induced fuel concerns and loss of its tax advantage over the fossil fuel variants eroding its appeal. Even as the broader passenger vehicle market posted robust sales, hybrid vehicles-which can run on fossil fuels as well as an electric motor-are losing pace in 2026, even as automakers prepare a string of launches to revive the segment.

EV penetration, or its share in total vehicle sales, has pulled significantly ahead of hybrids, widening the gap to more than 4% in recent months from around 2% in December 2025, as the growth in hybrids sales has lagged the overall industry for four consecut...