The demand for compressed natural gas (CNG) powered passenger vehicles in India experienced a notable resurgence during the latter half of 2023, marking a recovery from a 5.47% decline observed in the initial six months of the year. The retail sales of CNG vehicles surged to 360,036 units from January to November 2023, surpassing the figures recorded in the entire year of 2022, which stood at 331,111 units. This revitalization in demand was primarily attributed to the introduction of new vehicle models and the expansion of the CNG refueling infrastructure across the country.
Despite Maruti Suzuki maintaining its dominant position as the market leader, accounting for a significant 70% share in the CNG PV market, Tata Motors made significant strides by overtaking Hyundai in sales. Tata Motors recorded the sale of 55,005 CNG cars and SUVs during the first 11 months of 2023, outpacing Hyundai’s 45,646 units in the same period. Tata Motors’ ascendancy to the second position was notably bolstered by robust sales figures starting from September, a possible consequence of the introduction of its Punch CNG model in August.
This upward trend in CNG vehicle sales reflects the growing market for such eco-friendly transportation options in India. Maruti Suzuki envisions CNG vehicles constituting a substantial one-third portion of its total PV retail sales by the end of the decade, showcasing the brand’s commitment to sustainable mobility.
Despite the commendable growth in CNG vehicle sales, certain challenges persist within this segment. Factors such as the limited number of CNG refueling stations and comparatively higher servicing costs for CNG-powered cars compared to their petrol counterparts pose ongoing challenges. Furthermore, the CNG vehicle market faces stiff competition from the burgeoning electric vehicle (EV) sector, which is gaining traction due to the expansion of charging infrastructure and increasing consumer awareness and interest.
However, despite these challenges, the trajectory of growth for the CNG vehicle market appears promising. Manufacturers are actively expanding their CNG product portfolios to meet evolving consumer preferences and cater to the rising demand for environmentally friendly transportation alternatives. This upward momentum indicates a shifting trend towards eco-friendly fuel choices in the Indian automotive market.
Demand for CNG-powered passenger vehicles in India saw a resurgence in the latter half of 2023, rebounding after a 5.47% drop in the first half of the year. The retail sales of 360,036 CNG units from January to November 2023 exceeded the 2022 figures of 331,111 units. This surge was attributed to the introduction of new models and an expanding CNG filling network nationwide.
Maruti Suzuki remains the dominant market leader, commanding 70% of the CNG PV market. Tata Motors surpassed Hyundai in sales, with 55,005 units sold, overtaking Hyundai’s 45,646 units from January to November 2023. Tata Motors’ ascent to the second position was largely due to robust sales figures from September onwards, possibly attributed to the launch of its Punch CNG model in August.
This growth trend indicates the expanding CNG vehicle market in India, driven by increased consumer demand and the continuous introduction of CNG variants by manufacturers. Maruti Suzuki anticipates CNG vehicles to constitute a third of its total PV retail sales by the end of the decade.
While Maruti Suzuki leads with a diverse portfolio of 13 models, Tata Motors, Hyundai, and Toyota Kirloskar Motor follow with four, three, and three CNG models respectively. The rise in CNG vehicle sales aligns with the broader shift towards eco-friendly fuel choices, as CNG offers considerable savings compared to petrol or diesel options.
However, despite the resurgence of CNG vehicles, challenges such as limited refueling stations and higher servicing costs compared to petrol counterparts persist. Additionally, the CNG market faces competition from the burgeoning electric vehicle (EV) sector, which is gaining momentum with expanding charging infrastructure and heightened consumer interest.
Nonetheless, the CNG vehicle market’s growth trajectory remains promising, with manufacturers expanding their CNG product portfolios to meet evolving consumer preferences and the increasing demand for environmentally friendly transportation alternatives.