According to Vahan data, the Indian automotive sector witnessed a historic and remarkable milestone with CNG car sales surpassing diesel in FY25. Vehicle sales totaled 787,724 CNG vehicles compared to diesel-powered passenger cars of 736,508.
The shift in India's preference for passenger vehicle fuel represents a breakthrough in the country's usage, while signaling and expanding consumer interest in affordable, eco-friendly alternatives.
The upward trend in CNG car sales shows an increase of 35% year-on-year, far surpassing the growth in diesel car sales at 5%. Additionally, electric and hybrid vehicles experienced a 15% uptick while petrol car sales declined by 7%, which again suggests that buyers’ priorities are shifting as a result of fuel price inflation and costs of ownership over the long term.
Carmakers Responding to Trend
This demand for CNG triggered fast responses from car manufacturers. In four months, there have been four new CNG variants launched by major carmakers.
Renault launched Kwid, Kiger, and Triber with CNG options.
Citroen launched the Citroen C3 CNG.
Nissan launched the Nissan Magnite CNG.
At the same time, we have Tata Motors now working on a CNG version of its new Curvy SUV, and we are expecting Kia to launch a Carens CNG before the end of the year.
At this time, almost every carmaker, Maruti Suzuki, Hyundai, Tata, Toyota, Honda, Kia, Nissan, Renault and Stellantis, will have a CNG vehicle.
Why Some Players Stay Away
In spite of the boom, companies like Volkswagen Group, JSW MG and Mahindra appear to be steering clear of CNG, it seems they are focused on EVs and hybrids, in line with premium brands and forward-facing portfolios.
What is responsible for the boom in CNG?
A perfect storm of factors has fueled CNG's newfound main-streaming success:
The running costs while running CNG could be as low as ₹3 to ₹4/km.
CNG prices remain fixed at around ₹75 to ₹76/kg.
The intentions of the government, to increase fuel stations from 7,500 in 2024 to 18,000 market standard by 2032.
Advances in technology, for example, Tata's twin-cylinder technology which saves boot space.
And, Maruti Suzuki, India's CNG grandfather, has consolidated its position by introducing factory-fitted CNG variants across nearly all of its model range, also helping to provide consumer reassurance.
As fuel options change and infrastructure increases, CNG is well on track to lead mass-market mobility in India for the foreseeable future.
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