In the first eight months of FY2022, Maruti Suzuki models accounted for 81 percent of all CNG sales in India, representing a 45 percent increase year over year.
Even after the November 4 excise duty cut, the price of petrol and diesel in most Indian cities remains above Rs 100, resulting in a surge in demand for CNG-fueled vehicles over the past year. While Maruti Suzuki has benefited the most from this, they are also experiencing a surplus.
Due to the ongoing semiconductor shortage, Maruti Suzuki, like other Indian carmakers, is experiencing a demand-supply mismatch. This has hampered its ability to meet rising customer demand for its vehicles, particularly those that run on the much less expensive CNG fuel. Maruti Suzuki currently has a backlog of 2,80,000 cars on order, with over 1,20,000 bookings for CNG-powered models accounting for 43 percent of all pending orders.
Maruti Suzuki currently has over 1,20,000 CNG vehicles on order.
In comparison to the previous year, India’s CNG market has grown by 56%.
Maruti Suzuki aims to sell 2,50,000 units by the end of FY2022.
CNG versions of the Maruti Ertiga and Wagon R are in high demand
According to the company, the Ertiga CNG 7-seater has a 50% market share, or over 60,000 units, of the total CNG cars in the pipeline. Following closely behind is the immensely popular city runabout – Wagon R CNG – which has a 30% share or 36,000 orders in hand for its CNG versions that have yet to be delivered to customers. Other Maruti Suzuki models that have a CNG bi-fuel option account for the remaining 20%. The Alto, S-Presso, and Eeco are available to private customers, while the Super Carry, Tour S, and Tour M are available to fleets.
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CNG vehicle sales are up 56% year to date
According to industry data, CNG car sales in India increased by 56 percent from April to November 2021, with a total of 1,36,357 PVs sold (April-November 2020: 87,634). Car sales increased by 45 percent to 88,180 units, accounting for 65 percent of total CNG PV sales. UVs, with 32,444 units, saw a 90 percent year-over-year increase and accounted for 24% of the market share, while vans, with 15,733 units (up 64 percent), accounted for the rest.
The growing CNG market share in the PV segment reflects the much improved performance of all three sub-segments: cars to 9.87 percent, UVs to 3.50 percent, and vans to 24 percent. Overall, CNG’s share of the PV market has increased to 7.50 percent, up from 6% a year ago.
Maruti Suzuki and Hyundai are the big winners in the CNG PV market. Seven Maruti models – Alto, S-Presso, Celerio, Wagon R, Dzire, Ertiga, and Eeco – account for 1,10,459 units, or 81 percent, of the total 1,36,357 units sold in the first eight months of FY2022, representing a 45 percent increase year-on-year (April-November 2020: 76,377 units).
In FY2022, Maruti Suzuki plans to sell 2,50,000 CNG vehicles
MSIL sold 1,57,954 CNG models in the first twelve months of FY2021, and has set a sales target of 2,50,000 units by the end of FY2022.
Shashank Srivastava, director of sales, marketing, and service, says “CNG has gained a lot of traction in the mainstream market as a viable clean fuel alternative. ‘Affordability and availability’ are the main reasons for this.
Recognizing this potential, India’s largest automobile manufacturer is finalising plans to expand its CNG product line. “Customers have requested CNG in the Vitara Brezza and Swift, and there is also strong demand for CNG in the Baleno and Ciaz. We’re looking into it and will decide which models to offer with CNG “In a previous interview with our sister publication Autocar Professional, Srivastava stated.