The total sales of CNG (compressed natural gas)-powered cars in the country are expected to surpass half a million in FY24 given the current strong sales momentum.

Over the past several months, CNG-powered cars have been witnessing a strong demand as an increasing number of car buyers are now choosing vehicles powered by alternative fuels. Now, CNG as a fuel with its wide availability and accessibility has gained a lot of acceptance.

During the first half of this fiscal, total volumes of CNG-powered cars grew 36 per cent to 2,91,556 unitscompared with 2,13,807 units in the first half of the previous fiscal. In FY23, the total volume of CNG cars stood at about 4.04 lakh units.

Notable differences in prices compared with petrol prices offer a sustained lower operating cost for CNG vehicle owners. Also, the rapid increase in the CNG network in the recent past and the government’s efforts to further ramp up the CNG network led to a rise in demand for vehicles fuelled with CNG.

“Customer perception is now positive on CNG variants regarding safety and performance,” Shashank Srivastava, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India Ltd (MSIL), told businessline.

MSIL, which offers the highest number of CNG models, reported a 43 per cent increase in its CNG car sales at 2,18,942 units in H1 of this fiscal compared with 1,53,034 units in the same period of the last fiscal.

“We now offer CNG options in our SUVs like Grand Vitara and Brezza. Also, more CNG models have been added to our portfolio,” says Srivastava.

CNG variants of Maruti models such as Wagon R, Ertiga, Dzire, Eeco and Brezza are witnessing high demand from prospective car buyers. MSIL sold a little over three lakh units of CNG cars in FY23 and the company expects to record a growth in line with the estimated industry growth of more than 35 per cent in FY24.

Tata Motors’ line-up

Tata Motors has also been witnessing good momentum for its CNG-powered passenger vehicles, as the company has been expanding its CNG portfolio. It recently expanded its CNG portfolio with the launch of iCNG technology in Tiago, Tigor, Punch and Altroz.

The company recorded a 46 per cent growth in CNG cars during the first half of this fiscal, but it didn’t disclose the sales numbers.

“Customers today are increasingly choosing alternate fuel options with the intent of being economical as well as having an eco-friendly drive experience,” said a spokesperson of Tata Motors.

The availability of CNG has improved, as there are more than 5,760 stations across India, which proves the growing acceptance of this fuel option. By 2024, the number of CNG pumps is expected to grow to 8,000, making CNG even more accessible than it is today.

Tata Motors expects a significant increase in its CNG penetration, from the current 10 per cent to 25 per cent by the end of the decade.

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