Retail sales data available on the VAHAN website reveals that 3,64,528 CNG cars were sold in the first 10 months of FY2024 (April 2023-January 2024), which is a 29 percent increase over last year's 2,82,364 units. This is not just more than FY2023’s 3,27,820 units but at this pace, it could translate into best-ever fiscal sales of an estimated 4,75,000 units by March 2024.
- There are 23 CNG cars on sale in the market now
- Tata recently revealed CNG automatics of the Tiago and Tigor
There are 23 CNG cars and SUVs on sale in India, with market leader Maruti Suzuki having the biggest portfolio of 13 models. This is followed by Tata Motors (four models) and Hyundai and Toyota Kirloskar Motor (three models each).
Data: Vahan (as of 7pm, February 3, 2024)
Maruti Suzuki leads CNG sales with 69 percent market share
Retail sales numbers in the April 2023-January 2024 period shows that Maruti Suzuki has sold 2,51,620 CNG vehicles, which gives it a commanding 69 percent share of the market. By the end of this decade, Maruti Suzuki expects to see CNG vehicles account for a third of its total sales.
Tata Motors, which has overtaken Hyundai when it comes to CNG sales, possibly due to the introduction of its Punch CNG in August 2023, has retailed a total of 64,972 CNG cars and SUVs in the first 10 months of FY2024, giving it an 18 percent market share.
Tata Motors recently also revealed the CNG automatic variants of the Tiago and Tigor and opened bookings for the same. This makes the Tiago and Tigor the first factory-fitted CNG vehicles to get an automatic. By 2026, Tata is targeting the share of CNG cars and SUVs to grow from the existing 14 percent to 25 percent. The planned introduction of the Nexon CNG model is a step in that direction.
Meanwhile, Hyundai Motor India has sold a total of 41,806 CNG cars and SUVs, and currently has a 11.46 percent market share. VAHAN's month-wise data reveals that between April 2023 and July 2023, Hyundai, with 13,881 units sold, was ahead of Tata Motors' 12,166 units. However, the launch of the Punch CNG helped Tata outsell the Korean carmaker in the next six months.
Toyota Kirloskar Motor, which has recently entered the CNG market with the Glanza hatchback, Urban Cruiser Hyryder SUV and the Rumion MPV, has sold a total of 6,064 units in the first 10 months of FY2024, with a 1.66 percent market share.
CNG: India's fastest growing segment
The sustained growth of the CNG segment is also why manufacturers are gradually expanding their product portfolios to include CNG variants. Since FY2015, 21 lakh CNG passenger vehicles have been sold in India, with 52 percent – 11,04,645 units – having been sold in the past four fiscal years since FY2021.
From a consumer point of view, other than the environment-friendliness, a CNG-powered vehicle also provides considerable savings compared to its petrol or diesel-engined siblings. What’s also driving the consumer shift to CNG models is the high price of petrol (Rs 106.29 a litre in Mumbai) and diesel (Rs 94.25 a litre in Mumbai) that's remained unchanged since May 2022.
The slashing of CNG prices in early April was a welcome respite to motorists using CNG-powered vehicles, and, at Rs 76 per kg in Mumbai, CNG is Rs 30.29 cheaper than petrol and Rs 18.25 cheaper than diesel.
CNG vehicle manufacturers also face competition from electric vehicles, which is seeing an increase in demand. While the initial cost of an EV is higher than either a CNG, petrol or diesel model, the much lower cost of ownership in the long run remains a very attractive buying proposition. Nevertheless, the focus of both is on eco-friendly transportation.
Sergius Barretto
Viraaj Bhatnagar
Saptarshi Mondal
Kiran Murali
Ketan Thakkar
