The new black is CNG. In the Indian passenger car sector, there has been a significant increase in demand for the cleaner fuel technology, which releases less pollutants into the environment and does not cause the range anxiety that is often associated with electric automobiles. Beyond the participants in this sector, such as Maruti Suzuki, Tata Motors, and Hyundai, this is one reason why additional manufacturers, like Renault and Nissan, have begun selling CNG as retrofitment kit options for their vehicles in the nation. Toyota also sells CNG vehicles in India, but they are originally rebadged Maruti Suzuki models under the worldwide collaboration between Suzuki and Toyota, among others.

In CY24, CNG vehicles experienced a 35% increase in sales year over year.

The alluring value proposition of the cleaner fuel is seen in the robust 35% increase in retail sales of CNG-powered passenger cars in CY2024. Maruti Suzuki's 15-model lineup helped the company maintain its strong position in the CNG market, with a 71.60 percent market share, by selling over 500,000 units annually for the first time. Tata Motors sold 115,432 vehicles, accounting for 16.13% of the market. According to Vahan data, in the previous calendar year, Hyundai sold 71,811 units, while Toyota sold 15,815 units. The market shares of these two OEMs were 10.04% and 2.21%, respectively. Tata saw the biggest gain in its CNG car market share in CY24, at 77%, followed by Maruti Suzuki (30%), Hyundai (16%), and Toyota (118%).

In FY25, Tata and Maruti Suzuki reported a notable rise in CNG sales.

According to Tata Motors, which has been selling its line of passenger cars with petrol-CNG bi-fuel powertrains and factory-installed twin-cylinder CNG kit in vehicles like the Tiago, Tigor, Punch, Altroz, and others, there has been a 35% increase in demand for its CNG passenger vehicles. With 1.39 lakh CNG-powered passenger automobiles sold in FY25 as opposed to 91,000 units in FY24, the domestic auto powerhouse has seen significant increase.

Maruti Suzuki, India's largest automaker, sold over 6.2 lakh CNG-powered passenger automobiles in FY25, representing a year-on-year increase of more than 28 percent. One out of every three Maruti Suzuki vehicles sold in FY25 was powered by CNG, which was also reflected in this figure. Interestingly, this figure exceeded the original sales goal as well. The OEM had established a goal of selling more than six lakh CNG vehicles at the start of the prior fiscal year.

What is driving the increase in CNG automobile sales?

The passenger car sector in India has been undergoing a substantial and multifaceted transformation. The widespread use of CNG vehicles is one of the main improvements. In the past, the use of CNG in the personal car industry was minimal. It served as the preferred fuel in the fleet category and the commercial vehicle sector. The increased cost of gasoline and diesel, though, has been pushing consumers who are concerned about costs toward passenger cars that run on CNG.

The challenges in the adoption of electric vehicles, such as range anxiety, high upfront cost, insufficient public charging infrastructure, etc., only serve to exacerbate this change in consumer preference for CNG vehicles. Although hybrid is a viable choice to bridge the gap between pure ICE (internal combustion engine) models and electric vehicles, the high cost of acquisition and lack of models available on the market are slowing the pace of adoption.

In such a case, CNG is serving as a practical fuel alternative that is relatively affordable, has a reduced operating cost, produces fewer pollutants, and is also supported by government regulations.

Read Also: AI Envisions the Future Mahindra Bolero: See the Next-Gen Concept

Get the latest Bollywood entertainment news, trending celebrity news, latest celebrity news, new movie reviews, latest entertainment news, latest Bollywood news, and Bollywood celebrity fashion & style updates!

HOW DID YOU LIKE THIS ARTICLE? CHOOSE YOUR EMOTICON!