This growth in CNG demand has prompted several carmakers to launch new models. Four carmakers have introduced CNG models in the last four months alone.In FY25, sales of CNG cars surpassed diesel for the first time, with 787,724 CNG units sold compared to 736,508 diesel carsaccording to Vahan data. This shift is prompting most major car manufacturers to introduce CNG models.
CNG car sales experienced a significant surge in FY25, outpacing other fuel types. The data indicates a 35 per cent increase in CNG car sales year-on-year, reports Financial Express.
On the other hand, diesel car sales only rose by 5 per cent. Electric vehicles and hybrids saw a 15 per cent increase, while petrol car sales declined by 7 per cent. Rising petrol and diesel prices, lower running costs, and expanding refuelling infrastructure are also amongst the factors behind rising sales of CNG cars.
Carmakers initiative amid the soaring CNG demand
This growth in CNG demand has prompted several carmakers to launch new models. Four carmakers have introduced CNG models in the last four months alone.
Honda introduced CNG variants of the Amaze and Elevate. Renault added CNG options for the Kwid, Kiger, and Triber. Citroen launched the C3 CNG, and Nissan rolled out the Magnite CNG.
More manufacturers are expected to join the CNG market soon. Industry executives report that Tata Motors will soon launch a CNG version of its upcoming Curvv SUV. Kia is also set to introduce a CNG variant of Carens by the end of the year. With these additions, most major manufacturers will offer CNG models. This includes Maruti Suzuki, Hyundai, Tata, Toyota, Honda, Kia, Nissan, Renault, and Stellantis.
Why are few still out of the race?
However, some companies are choosing to stay out of the CNG market. Volkswagen Group, JSW MG, and Mahindra are not expected to introduce CNG models. Analysts suggest that brand identity and product strategy are key factors in this decision. These companies are prioritising electric vehicles and hybrids.
For the mass market, CNG is becoming a more appealing option. The fuel’s popularity is driven by several factors.
Rising petrol and diesel prices are a major consideration for consumers. The relatively low running costs of CNG, at ₹3-4/km, also contribute to its appeal.
The expansion of CNG refuelling infrastructure is also playing a role. The government aims to increase CNG filling stations significantly. The goal is to increase the number of stations from 7,500 in 2024 to over 18,000 by 2032.
Maruti Suzuki and Tata Motors have played a significant role in the recent growth of CNG car sales. Maruti Suzuki offers factory-fitted CNG options across nearly all its models. Tata Motors has introduced innovative twin-cylinder technology. This technology places two 30-litre CNG cylinders under the boot floor, preserving luggage space.
This resolves a major drawback of traditional CNG cars, which often have limited luggage space due to a large CNG tank.
The stable pricing of CNG in recent years has also helped its popularity. After a sharp price rise between 2021 and 2023, CNG costs have remained steady.
CNG costs have remained around ₹75-76/kg. This makes it a more predictable and appealing choice for consumers.
