The Indian passenger vehicle market is witnessing a robust rise in demand for CNG (compressed natural gas)-powered models, with CNG options now making inroads into high-end car segments too. Industry representatives attribute the double-digit growth in CNG car and utility vehicle (UV) sales to several key factors: the rapid expansion of CNG refuelling infrastructure, the launch of more CNG variants by automakers, increased production capacity as semiconductor shortages ease, and the attractive total cost of ownership (TCO) that CNG vehicles offer. Together, these factors make CNG an increasingly appealing choice for car buyers across segments.

Maruti Suzuki, a leader in the CNG market, reports a significant shift among customers in premium segments, such as SUVs, who are now opting for CNG variants. The company’s CNG variants of models like the Brezza and Ertiga are experiencing high demand as a result.

Following the recent introduction of its S-CNG powertrain in the fourth-generation Swift, Maruti Suzuki now offers the widest lineup of S-CNG vehicles in the industry, spanning 14 models. The company’s total CNG sales reached 2.95 lakh units in the first half of this fiscal year, up from 2.31 lakh units over the same period last year, marking a 27% increase.

“CNG models have been performing exceptionally well for us, with October achieving our highest-ever monthly retail of around 71,000 CNG vehicles. Last year, one in every four vehicles we sold was CNG, whereas this year, that figure has risen to one in three. CNG now contributes approximately 34% to our total sales, up from 25-26% last year. If these trends persist, we could potentially reach the 6-lakh-unit mark by the end of this fiscal year,” said Partho Banerjee, Senior Executive Officer, Marketing & Sales at Maruti Suzuki India Ltd, told BusinessLine.

Hyundai Motor India, the country’s second-largest carmaker, also achieved record CNG sales of approximately 8,300 units in October, with CNG accounting for 15% of its domestic sales, up from 13% in September. Hyundai recently introduced CNG versions of its entry-level SUV Exter and the compact car Grand i10 NIOS, powered by its proprietary Hy-CNG Duo technology.

Tata Motors’s Nexon sees healthy numbers

Tata Motors, too, has broadened its CNG portfolio, with the recent launch of a CNG variant for its flagship SUV, the Nexon, which has seen a strong market response. Toyota Kirloskar Motor (TKM) has also expanded its offerings with the E-CNG variant of the Rumion MPV, claiming a fuel efficiency of 26.11 km/kg.

French automaker Renault is similarly preparing to enter the CNG space with a variant of its Triber MPV, aiming to attract customers in the fleet market.

More than 1.6 lakh units sold

According to data from Vahan, over 6.1 lakh CNG cars and utility vehicles have been sold so far this year, a significant increase from around 5.3 lakh units in 2023.

The surge in CNG vehicle sales is being driven by multiple factors. “Supply chain constraints that affected production have now eased, allowing production to keep pace with demand. Additionally, CNG, being a cleaner alternative to conventional fuels, resonates with environmentally conscious consumers,” said Banerjee.

Expanded CNG infra

Beyond the strong TCO advantage, the rapid expansion of CNG infrastructure is playing a key role, with nearly 7,000 CNG stations now operational nationwide, thanks to partnerships with private city gas distributors and government support. Enhanced drivability, better mileage, and the expanding CNG network are making these vehicles an increasingly practical choice for a diverse range of consumers.

Thivahar Bethune P, Vice President of Marketing at AG&P Pratham, highlighted that his company has collaborated extensively with automakers and dealers, who have been instrumental in facilitating the shift to CNG. “With the various benefits of CNG and the improved refuelling infrastructure, customer response has been highly positive, further driving CNG vehicle sales,” he added.

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