New Delhi: Sales of CNG cars are projected to shoot up in robust double-digits within the present monetary yr on decrease operating prices and wider availability of the gas, whilst emerging petrol and diesel costs harm call for amid vulnerable marketplace sentiment.
Maruti Suzuki, the rustic’s greatest carmaker, expects gross sales of CNG cars to develop 36 consistent with cent to 144,000 gadgets in FY21. The corporate has 8 CNG-powered cars in its portfolio and plans to make the gas possibility to be had on all small vehicles.
South Korean rival Hyundai plans to release the gas possibility within the Hyundai XCent sedan later this yr, concentrated on consumers particularly within the fleet section. Between them, Maruti Suzuki and Hyundai promote a few dozen factory-fitted CNG fashions.
“Even if we don’t believe the narrowing worth differential between petrol and diesel (which has brought on a shift in shopper desire for petrol cars), the cost of gas itself has greater considerably, which is a unfavorable for the business. Sales volumes gets affected if gas costs stay prime. This is the place CNG emerges as a viable possibility,” stated Shashank Srivastava, government director (advertising and gross sales), at Maruti Suzuki.
The price of operating a CNG car is ready Rs 1.five consistent with km, which is lower than part that of petrol and diesel cars. The top rate paid at the acquisition price of a CNG car at Rs 50,000-60,000 is not up to Rs 1,25,000-1,50,000 of diesel cars.
Srivastava added, “The factor isn’t the acceptability however the availability of the gas, which hindered gross sales of CNG cars previous. However, with the federal government now pushing enlargement of the distribution community, the collection of CNG retailers in addition to the collection of towns the gas is to be had in is about to double within the subsequent 6-7 months.”
As many as 3,400 CNG distribution retailers are scheduled to develop into operational throughout 373 towns by way of the top of the yr. There have been 1,730 CNG stations in 190 towns on the finish of 2019.
While Maruti Suzuki has stopped gross sales of diesel vehicles to concentrate on gross sales of petrol and CNG cars, Hyundai stated it’ll be offering all 3 gas choices.
Tarun Garg, director (gross sales and advertising) at Hyundai Motor India, stated the compact automotive section is one that can most probably see enlargement in call for, be it from petrol, diesel or CNG variants.
“In CY2019, we bought 11,416 CNG powered fashions and going ahead we’re constructive about call for for each diesel and CNG gas sorts within the close to time period,” Garg stated.
Hyundai lately provides CNG-powered variants in small vehicles Santro, Grand i10, Grand i10 Nios and sedan Aura.
Local gross sales of CNG cars greater 7 consistent with cent to over 117,000 gadgets in FY20. Overall gross sales of passenger cars fell 18 consistent with cent to two.78 million gadgets.
Also Read: Drop in petrol, diesel worth hole to gas consumers’ shift in opposition to petrol, CNG vehicles: ICRA