Sales of CNG-driven cars set to pick up as price of fuel dips
- IBEF
- April 10, 2023
The recent decrease in the price of the green fuel is expected to enhance sales of compressed natural gas (CNG)-powered passenger vehicles.
Seven out of ten CNG vehicles sold in the domestic market are manufactured by Maruti Suzuki India, and the company expects to sell 450,000-475,000 CNG models in the upcoming fiscal year 2024, up from 325,000 in FY23. Senior executive officer at Maruti Suzuki India, sales and marketing, Mr. Shashank Srivastava stated that The latest emission regulations have raised the cost of diesel automobiles. Also, the price advantage that diesel fuel had over petrol has been reduced, making CNG a more appealing alternative.
Indraprastha Gas, India's largest city gas distribution business, reduced the price of CNG by US$ 6 per kg as a result of the government's revision of the formula for setting domestic gas prices. This was the firm's first price reduction in two years. Now, CNG has a 30% cost advantage over petrol.
Hyundai Motor India, the country's second-largest passenger car manufacturer by sales, anticipates that the price decrease would increase demand for CNG vehicles. According to chief operating officer Mr. Tarun Garg, the price reduction on CNG is anticipated to boost sales of our CNG models by an average of 10-15%, and monthly average sales should progressively increase from 5,000–5,200 units in calendar 2022 to 6,000 units during 2023. Sales of CNG vehicles at the Korean automaker climbed from 37,584 units in CY2021 to 63,058 units in CY2022.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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