CNG Cars Demand Increasing: According to a report in Economic Times, Tata Motors, the country’s largest automotive group by revenue, will increase its total sales in FY2024 due to increase in demand for CNG vehicles after the central government cut natural gas prices. Is considering doubling the share of CNG vehicles.

The company, which recently launched the CNG variant of the small car Altroz. According to the launch of increasing number of new vehicles in this segment, difference in prices with petrol and increasing availability of CNG stations is increasing the demand. Also, with this new model added to the company’s portfolio, the sales of CNG vehicles are expected to grow by 10-12% in this FY, from over 6% in FY23.

Despite rising gas prices in the domestic market, sales of CNG vehicles grew by 50% in the last financial year, at the same time overall car sales grew by 27%. Apart from this, there remains a substantial difference between the prices of CNG and petrol. Looking at the new vehicles being launched in this segment, customers are choosing a CNG car keeping in mind the long term.

Currently, Tata Motors sells its Tiago, Tigor and Altroz vehicles with CNG option. Being economical, companies from Maruti Suzuki to Hyundai and Tata Motors are betting on CNG as an affordable option for customers, especially on entry-level vehicles. Currently, CNG price in Delhi is ₹73.59 per kg and in Mumbai is ₹79 per kg. While on Monday, the price of petrol in Delhi was sold at Rs 96.72 and in Mumbai at Rs 106.31.

At present, car companies are selling 34,000-35,000 CNG vehicles every month in the domestic market, while there is a huge potential to grow further due to the increase in CNG stations.

CNG accounted for 13% of all passenger vehicles sold in the country in the first two months of this year, up from 3.5% in 2019. On the other hand, market leader Maruti Suzuki, which offers CNG option in 13 of its models, has seen a rise in demand for CNG vehicles and 26% of sales in the first two months of the financial year are CNG vehicles.

Apart from this, sales of CNG vehicles of Korean automobile company Hyundai increased by two-thirds to 63,058 units last year. Which is expected to increase further.

Also read: – Last month, these 5 small SUV cars had the highest sales, see whose performance

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