Carmakers are betting big on factory-fitted CNG variants amid rising demand
Though passenger vehicles’ sales fell 18% last year, say industry watchers, CNG car sales increased 7% to over 117,000 units in FY20. The number of CNG vehicles on the roads rose from 22 lakh to 34 lakh in the last 5-7 years. Sales of CNG vehicles are projected to shoot up in double digits in the current financial year on lower running costs and wider availability of the fuel. Car companies are making the most of the trend.
Maruti Suzuki currently offers CNG variants in 7 of its 14 models. The country’s largest car maker expects CNG variants’ sales to grow 36% to 144,000 units in FY21. It plans to make the fuel option available on all small cars.
Hyundai offers factory-fitted CNG options in 3 of its 10 models. Hyundai Motor India, says CNG engine sales have been picking up month on month for Santro, Nios and Aura. In CY19, Hyundai sold 11,416 CNG powered models.
Source: Dated 31st October 2020
Maruti Suzuki India Ltd expects sales of its natural gas-powered cars to jump 59% in the next fiscal year as more buyers embrace the greener fuel amid soaring petrol prices and the wider availability of compressed natural gas (CNG).
The country’s largest carmaker hopes to sell 250,000-257,000 CNG vehicles in the year beginning 1 April from about 157,000 units that it expects to sell this fiscal
Mint reported in February 2019 that Maruti is planning to sell around 200,000 CNG vehicles or more by 2022 to meet fuel efficiency norms aimed at curbing extensive air pollution. In 2020, the government also announced the setting up of 10,000 CNG stations by 2025 to improve availability.
Source: 20th February 2021
With a spree of CNG Fuelling stations coming up in recent times, car makers are betting big on manufacture of CNG cars. Maruti and Hyundai are betting on double digit growth in this space. We expect new entrants in the coming months.