CNG vehicle sales surged 33% to 550,000 units in 2024, driven by cars and SUVs

Over half a million CNG-fuelled passenger vehicles were sold between January-June including; three-wheelers, goods carriers, buses, and vans. But Maruti Suzuki has a 66% PV share, Tata Motors has doubled its share to 22% due to the introduction of new CNG models, Bajaj Auto has an 87% dominance in the 3W market, and Tata is the leader in the goods carrier sector. Soon Bajaj Auto will unveil the world’s first CNG motorcycle with the model’s name Freedom 125. By using this CNG bike users can take advantage of an alternative fuel. The demand for CNG-fuelled vehicles is rapidly increasing across passenger vehicles, three-wheelers, goods carriers, and buses in India as seen in the retail sales in the first six months of CY2024. As per the latest Vahan-derived retail sales data between January 1 and June 30, 2024, a total of 552,070 CNG-powered vehicles were sold in India, which is a strong 33% year-on-year increase (H1 2023: 414,366 units).

While all four vehicle sub-segments have seen growth in H1 2024, CNG cars and SUVs (up 49%) have a 44% share, while three-wheelers have 31 percent.

Segment-wise retail sales data table reveals CNG-powered passenger vehicles (cars, SUVs and MPVs) at 242,289 units registered handsome 49% Year-on-Year (YOY) growth in H1 2024 (H1 2023: 162,585). It contributes 44 percent of the CNG industry’s sales.

Rapidly, fuelled three-wheeler is shifting to electric mobility, saw a more 11% YoY increase to 173,480 units, and accounting for a 31% of the overall CNG market.

Goods carriers vehicles such as; light, medium and heavy, together sold a total of 43,889 units in the January-June 2024 period, up 8% YoY (H1 2023: 40,630 units).

The first six months of year 2024 saw 90,308 CNG-powered buses and vans being sold, which makes for sterling 71% YoY increase (H1 2023: 52,725 units) and accounts for a 00% share of the market.

CNG PASSENGER VEHICLES: 242,289 units, up 34% YoY

Maruti Suzuki CNG share at 66%, Tata Motors well ahead of Hyundai

There is the largest share of the CNG vehicle industry with a 44% contribution in vehicle sales between January and June 2024, the passenger vehicle industry with 242,289 units and 34% YoY growth.

According to CY2023, India PV Inc had sold 400,016 CNG units, up 17.64% on FY2022’s 340,100 units. PV market leader Maruti Suzuki also acts like the dominant player over this sub-segment with 278,699 units or 70% of the CNG PV market. The company has 13 models (Alto K10, Baleno, Brezza, Celerio, Dzire, Eeco, Ertiga, Grand Vitara, S-Presso, Swift, Wagon R, XL6, and the Fronx), understandably, has a vice-like grip on the market.

In the month of January-June 2024 period, Maruti Suzuki has sold 159,031 units, up 34% (H1 2023: 118,903 units) and 57% of its FY2023’s total. At present, the company has 66% share of the CNG PV market. Maruti Suzuki is completely pulled out of the diesel car market in April 2020, and filled with CNG models.

Tata Motors holds the third position in PV OEM of overall sales after Maruti Suzuki and Hyundai Motor, CNG-powered car and SUV sales in India. Tata Motors, which had sold a total of 63,993 CNG cars and SUVs in CY2023, has already achieved 85% of that total with its H1 2024 retails of 54,545 units, up 222% (H1 2023: 16,940 units). Its current CNG market share stands at 22.51%  more than double its  10.41% share in H1 2023.

Tata Motors entered the CNG market with the Tiago hatchback and Tigor sedan in January 2022, has gone hugely benefited from the rollout of new CNG models like Tata Punch CNG compact SUV, responding to Hyundai Exter CNG compact SUV. In February 2024, Tata Motors launched the Tiago and Tigor CNG AMT. Now, the company has announced to launch the Nexon CNG, which was showcased at the Bharat Mobility Expo in January this year.

Hyundai Motor has three models Aura, Grand i10 Nios and Exter has sold 24,427 units, up 5% on year-ago sales of 23,348 units. In CY2023, Hyundai had sold a total of 50,108 units. Recently, Toyota Kirloskar Motor’s has introduced CNG passenger vehicle,by expanding four models with Taisor joining the Glanza hatchback, Urban Cruiser Hyryder and the Rumion MPV. TKM, which had sold 6,553 units in CY2023, has retailed 4,009 units in H1 2024, up 49% year on year.

CNG THREE-WHEELERS: 173,480 units, up 11%

Bajaj Auto market share has increased to 87%, and fighting for 13% with its competitor

Compared to the blistering 50% YoY growth it had recorded in FY2023 (344,510 units), the growth in H1 2024 in this sub-segment is more muted. Sales of 173,480 units are up 11% (H1 2023: 156,961 units). This is most likely the higher demand for electric three-wheelers – 313,967 units in H1 2024, up 27% YoY

Overall, market leader Bajaj Auto are also in the que of CNG vehicles segment: its 150,587 units, up 11%, give it an 87% market share, remaining 13% for others of the market share.

CNG GOODS CARRIERS: 43,889 units, up 8%

Tata Motors maintains leadership

The CNG goods carrier vehicle market including light, medium and heavy goods carriers have slowest growth. The demand for goods carrier vehicles particularly for light goods carriers, seems to have been impacted by the electric vehicles, where the lower cost of transportation as compared to CNG is driving demand from last-mile mobility for logistics operators.

A year ago, CNG-powered goods carriers vehicles categories like small, medium and large, has 10% of the overall CNG vehicle market, However, it has now reduced to 8% in the January-June 2024 period with sale of 43,889 units, up 8% on year-ago H1 2023 sales of 40,630 units.

According to Vahan data four OEMs have seen downfall in their sales year on year. Tata Motors has a large range of commercial vehicles ranging from the Ace through to Ultra, remains the market leader with a 42% market share with 18,637 units, and has increased its share from the 38% it had in H1 2023.

Maruti Suzuki holds the second position, which has sold about 14,175 carrier goods vehicle, 0000 units fewer than it did a year ago, its current market share of 32%, saw its sales downfall 4% YoY.

Mahindra & Mahindra has sold 6,885 units, and made a record of 4% growth and has a 16% share of the goods carrier market. While VE Commercial Vehicles with 2,229 units, sees its numbers down 2% YoY. Ashok Leyland has sold 1,670 units total of Dost CNG, Dost Plus CNG and Bada Dost CNG, and saw demand of 61% YoY. SML Isuzu have seen its sales down between 266 units and 299 units a year ago sees sharply by 73% year on year.

CNG BUSES AND VANS: 90,308 units, up 71% YoY

Eeco gives Maruti an 86% share

Maruti Suzuki has captured 86% of market share in H1 2024the with Eeco van, however, this is a tad less than the 88% share it had in H1 2023.

Tata Motors and Ashok Leyland have a similar growth rate of 111% YoY. Although, Tata Motors sold 1,350 buses and vans. Ashok Leyland clocked sales of 481 units. Force Motors with 429 units, saw 233% hike on a year-ago base. Meanwhile, Bajaj Auto has sold 208 CNG-powered Qute quadricycles, 80 fewer than it did a year ago.

Improving CNG infrastructure fuels growing demand for CNG vehicles

Overall, the demand for CNG vehicles is inspired by the lower cost of ownership mantra, the greener fuel offers in the face of high petrol and diesel prices. In Mumbai, As of July 4, 2024, the price of CNG was at Rs 73.50 per kg as compared to diesel (Rs 89.97 per litre) and petrol (Rs 103.44 per litre).

Vehicle users be they personal or commercial always wants to operate pocket friendly fuel for their vehicle as compared to conventional petrol and diesel fossil fuels. The decision of buying cheaper CNG vehicle, which is a carbon-based fuel with much less carbon content as compare to diesel or petrol more eco-friendly.

Compressed natural gas is rapidly emerging as a pocket friendly fuel option for both intra-city and inter-city, and also thanks to the continuous growing CNG filling infrastructure across India. It is expected that the number of CNG filling stations across the country will be increase to 8,750 by end-FY2025, 10,200 by end-FY2026, 11,800 by end-FY2027 and 12,400 by end-FY2030.