CNG car demand rising fast amid EV push. What's propelling growth in this segment?

By: Mainak Das
| Updated on: 10 Jun 2025, 11:45 AM Share via: CNG is fast filling the gap between petrol or diesel powertrains and electric propulsion technology. CNG cars offer an alternative to petrol and diesel vehicles and also emit less pollution. CNG cars also cost less to run than petrol or diesel cars. It has gained popularity in India with sales hitting record margins. View Personalised Offers on Check Offers CNG is the new black. The cleaner fuel technology that emits fewer pollutants into the environment, while also not coming with range anxiety that is typically associated with electric vehicles, has been witnessing a rapid surge in demand in the Indian passenger vehicle market. This is one reason beyond the players in this segment, including Maruti Suzuki, Tata Motors and Hyundai; other OEMs like Renault and Nissan too have started offering CNG as retrofitment kit options for their vehicles in the country. Among others, Toyota also sells CNG cars in India, but the vehicles are originally rebadged versions of Maruti Suzuki models under the global partnership between Suzuki and Toyota. CNG cars recorded 35 per cent YoY growth in CY24In CY2024, CNG-powered passenger vehicles registered a strong 35 per cent growth in retail sales, which reflects the cleaner fuel’s compelling value proposition. Maruti Suzuki, with its 15-model portfolio, recorded more than 500,000 units for the first time annually to hold its firm grip in the CNG segment with a 71.60 per cent share. Tata Motors sold 115,432 units, registering a 16.13 per cent market share. Vahan data revealed that Hyundai and Toyota retailed 71,811 units and 15,815 units, respectively, in the last calendar year. These two OEMs registered 10.04 per cent and 2.21 per cent market shares, respectively. In CY24, Tata’s CNG car market share increased the most at 77 per cent, while Maruti Suzuki, Hyundai and Toyota recorded 30 per cent, 16 per cent and 118 per cent, respectively. Maruti Suzuki, Tata registered significant growth in CNG sales in FY25Tata Motors, which has been selling its range of passenger vehicles with petrol-CNG bi-fuel powertrains and factory-fitted twin-cylinder CNG kit in models like Tiago, Tigor, Punch, Altroz, etc, has claimed that it has recorded a 35 per cent growth in demand for the CNG passenger vehicles. The homegrown auto giant has sold 1.39 lakh CNG-powered passenger vehicles in FY25 as compared to 91,000 units in FY24, which registered a massive growth. The largest carmaker in India, Maruti Suzuki, sold around 6.2 lakh CNG-powered passenger vehicles in FY25, which marked a year-on-year growth of over 28 per cent. This also represented the fact that one in every three Maruti Suzuki cars sold in FY25 ran on CNG. Interestingly, this number also marked sales beyond the initial target. At the beginning of the previous financial year, the OEM had set a target of selling over six lakh CNG cars. What’s propelling CNG car sales growth?India’s passenger vehicle market has been undergoing a significant and multi-dimensional transformation. One of the key changes is the widespread adoption of CNG cars. Previously, CNG penetration in the personal vehicles segment was low. It was the fuel of choice in the commercial vehicle segment and in the fleet category. However, the higher petrol and diesel prices have been driving the cost-conscious consumers toward CNG-powered passenger vehicles. This shift in consumer preference toward CNG cars is further amplified by the challenges in the adoption of electric vehicles, which include range anxiety, high upfront cost, inadequate public charging infrastructure, etc. While hybrid is a viable option to fill the gap between the pure ICE (Internal combustion engine) models and electric vehicles, the high cost of acquisition and lack of models’ availability in the market are hindering the adoption pace. In such a situation, CNG is filling the gap as a viable fuel solution that is comparatively cheaper in price, offers a lower cost of operation, emits lower pollutants and enjoys the benefits of government regulations as well. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 10 Jun 2025, 11:45 AM IST
Source: hindustantimes.com