New Delhi, June 19 -- Compressed Natural Gas (CNG) could continue to grow as an auto fuel in India, even as electric vehicle (EV) adoption gathers pace across key states, according to a recent report by Nomura.

The report highlighted that state governments, especially Delhi and Mumbai, are expected to roll out aggressive EV policies to address the problem of rising air pollution. While this could put some pressure on the growth of CNG, analysts believe both fuel types could still co-exist in the coming years.

It stated, "CNG as an auto fuel could grow alongside EVs.... EV policies by states to continue pressuring CNG growth."

The report added that Delhi, which had already banned diesel vehicles older than 10 years nearly a decade ago, ...