By The sales data from the VAHAN website indicates a significant increase in the purchase of CNG cars during the first 10 months of FY2024 (April 2023-January 2024). A total of 3,64,528 CNG cars were sold during this period, marking a notable 29 percent increase compared to the previous fiscal year, which saw sales of 2,82,364 units. This surge in sales not only surpasses the FY2023 figure of 3,27,820 units but also suggests a potential record-breaking fiscal sales figure of around 4,75,000 units by March 2024.
Expansion in Product Offerings
?Currently, there are 23 CNG cars and SUVs available for sale in the Indian market. Maruti Suzuki leads the pack with the largest portfolio, offering 13 different models. Following Maruti Suzuki are Tata Motors, Hyundai, and Toyota Kirloskar Motor, each offering four, three, and three models, respectively.
Retail Sales Performance
The retail sales data for the period between April 2023 and January 2024 illustrates Maruti Suzuki’s dominance in the CNG vehicle market. The company sold a total of 2,51,620 CNG vehicles during this period, commanding a substantial 69 percent market share. Maruti Suzuki foresees CNG vehicles contributing significantly to its overall sales aiming for them to represent one-third of its total sales by the end of the decade.
Tata Motors has emerged as a strong contender in CNG sales surpassing Hyundai in market share. The introduction of the Punch CNG variant in August 2023 likely contributed to this success. Tata Motors sold a total of 64,972 CNG cars and SUVs in the first 10 months of FY2024, capturing an 18 percent market share.
Monthly Sales Breakdown
Analyzing the monthly sales figures, Maruti Suzuki consistently maintained high sales volumes, with notable figures in each month. Tata Motors saw a steady increase in sales, especially following the launch of the Punch CNG variant. Hyundai and Toyota Kirloskar Motor also contributed to the market, albeit with smaller market shares.
Innovations
Tata Motors introduced automatic variants of the Tiago and Tigor, making them the first factory-fitted CNG vehicles with automatic transmissions. The company aims to increase the share of CNG cars and SUVs from 14 percent to 25 percent by 2026 with plans to introduce the Nexon CNG model.
Market Competition
Hyundai Motor India faced tough competition from Tata Motors, particularly after the latter introduced the Punch CNG variant. Despite leading in sales between April and July 2023, Hyundai was overtaken by Tata Motors in the subsequent months. Toyota Kirloskar Motor entered the CNG market with models like the Glanza hatchback, Urban Cruiser Hyryder SUV, and Rumion MPV, contributing to overall sales.
Rapid Growth of the CNG Segment
The CNG segment in India is experiencing rapid growth, prompting manufacturers to expand their product portfolios. Since FY2015, a total of 21 lakh CNG passenger vehicles have been sold in India, with over half of these sales occurring in the past four fiscal years since FY2021.
Consumer Benefits and Trends
Consumers are drawn to CNG-powered vehicles not only for their environmental benefits but also for the significant cost savings they offer compared to petrol or diesel vehicles. The stable prices of petrol and diesel, coupled with the relatively lower cost of CNG, further incentivize consumers to opt for CNG vehicles. Despite competition from electric vehicles which are gaining popularity, both CNG and electric vehicles share a common focus on eco-friendly transportation.
Conclusion
India’s growing demand for affordable and environmentally responsible transportation options is reflected in the growth in CNG automobile sales there. The CNG market is expected to rise in the upcoming years as producers increase the range of products they provide and customers accept alternative fuel options more readily.
2024-02-07 17:45:34