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CNG Vehicle Sales Surge by 38% in FY2024, Boosted by Recent Price Cut

March 09, 2024 | 1 min read | Industry News

In the fiscal year 2024, the compressed natural gas (CNG) vehicle market has experienced a significant uptick, with sales soaring by 38% to a staggering 940,000 units. This surge in demand is attributed to various factors, including a sharp rise in the popularity of CNG-powered three-wheelers, passenger vehicles, goods carriers, and buses.

One of the primary catalysts for this growth trajectory is the recent price reduction of CNG by Rs 2.50 per kilogram. This favourable price adjustment has acted as a driving force, further fuelling consumer interest and accelerating sales within the sector.

The transition towards alternative fuels is gaining momentum, and alongside the burgeoning trend of electric mobility, the CNG vehicle industry is witnessing robust double-digit growth. According to retail sales data from Vahan, a total of 939,415 CNG-powered vehicles were sold during the first 11 months of the fiscal year, showcasing an impressive 38% year-on-year increase.

CNG Passenger Vehicles have emerged as a frontrunner in this surge, with sales reaching 402,433 units, marking a substantial 32% year-on-year growth. Maruti Suzuki has maintained a dominant position in the market, followed closely by Tata Motors, which has surpassed Hyundai in terms of sales figures.

In addition to passenger vehicles, the CNG-powered three-wheeler segment has also witnessed a remarkable upswing, with sales climbing by 50% to 326,802 units. Bajaj Auto commands a significant market share, with an impressive 87% hold in this segment.

However, the CNG goods carrier market has faced some challenges, with sales declining by 13% to 76,048 units. This decline can be attributed to the transition to electric vehicles, which offer a lower cost of ownership compared to CNG.

Despite these challenges, the demand for CNG vehicles continues to be driven by the lower cost of ownership and environmental benefits offered by this alternative fuel. The recent price reduction by Mahanagar Gas to Rs 73.50 per kilogram further reinforces the appeal of CNG, providing considerable savings compared to petrol and diesel alternatives.

With the prospect of continued growth and favourable market conditions, the CNG vehicle industry is poised for a promising future, setting the stage for unprecedented sales records in the coming years.

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