The price of petrol and diesel in most cities across India continues to be above the Rs 100 mark, even after the November 4 excise duty cut, due to which demand for CNG-fuelled cars has skyrocketed over the past year. And while Maruti Suzuki has been the biggest beneficiary of this, they are also facing a problem of plenty.
Maruti Suzuki, like other carmakers in India, is battling a demand-supply mismatch due to the continuing semiconductor shortage. This has impacted its ability to cater to the accelerating customer demand for its models, particularly those powered by the much cheaper CNG fuel. Maruti Suzuki is currently sitting on an order book of 2,80,000 cars, out of which over 1,20,000 bookings, or 43 percent of all pending orders, are for its CNG-powered models.
- Maruti Suzuki currently has a backlog of over 1,20,000 CNG vehicles
- CNG market in India has grown by 56 percent as compared to last year
- Maruti Suzuki is targeting sales of 2,50,000 units by end-FY2022
Maruti Ertiga and Wagon R CNG in huge demand
As per the company, the 7-seater Ertiga CNG commands the highest share of 50 percent or over 60,000 units of the total CNG cars in the waiting. Next up is the immensely popular city runabout – Wagon R CNG – that follows close behind with a 30 percent share or 36,000 orders in hand for its CNG versions yet to be delivered to customers. The balance 20 percent comprises other Maruti Suzuki models that are offered with a CNG bi-fuel option. These cars include the Alto, S-Presso, and Eeco available for private customers, as well as the Super Carry, Tour S and Tour M for the fleet segment.
CNG car sales up by 56 percent in year to date
As per industry data, CNG car sales in India have registered a growth of 56 percent between April-November 2021, with a total of 1,36,357 PVs being sold (April-November 2020: 87,634). While cars, with 88,180 units, registered 45 percent growth, they accounted for 65 percent of total CNG PV sales. Meanwhile, UVs, with 32,444 units, saw a 90 percent year-on-year increase and accounted for 24 percent of the share, while vans, with 15,733 units (up 64 percent), made up the rest.
| Growth of CNG-powered vehicles in India | ||||||
|---|---|---|---|---|---|---|
| Passenger Vehicles | April-Nov 2021 | April-Nov 2020 | Growth% | April-Nov 2021 Market Share | April-Nov 2020 Market Share | Growth% |
| Cars | 88,180 | 60,906 | 45% | 9.87% | 7.13% | 40% |
| UVs | 32,444 | 17,109 | 90% | 3.50% | 3.10% | 19% |
| Vans | 15,733 | 9,619 | 64% | 24% | 15.82% | 36% |
| Total | 1,36,357 | 87,634 | 56% | 7.50% | 6% | 25% |
The much-improved performance of all three sub-segments is amply seen in the growing CNG market share in the PV segment: cars to 9.87 percent, UVs to 3.50 percent and vans to 24 percent. Overall, the CNG share in the PV market has grown to 7.50 percent from 6 percent a year ago.
The big gainers in the CNG PV market are Maruti Suzuki and Hyundai. Of the 11 CNG models on sale in India, seven Maruti models – Alto, S-Presso, Celerio, Wagon R, Dzire, Ertiga and Eeco – account for 1,10,459 units or 81 percent of the total 1,36,357 units sold in the first eight months of FY2022, notching a 45 percent year-on-year growth (April-November 2020: 76,377 units).
| Sales of CNG-powered cars this fiscal | ||||
|---|---|---|---|---|
| Models | April-Nov 2021 | April-Nov 2020 | Change (in units) | Growth % |
| Maruti Suzuki WagonR | 45,255 | 28,308 | 16,947 | 60% |
| Maruti Suzuki Ertiga | 32,444 | 17,109 | 15,335 | 90% |
| Maruti Suzuki Eeco | 15,733 | 9,619 | 6,114 | 64% |
| Hyundai Aura | 11,914 | 4,752 | 7,162 | 151% |
| Hyundai Grand i10 Nios | 9,982 | 4,334 | 5,648 | 130% |
| Maruti Suzuki Dzire | 8,589 | 4,387 | 4,202 | 96% |
| Maruti Suzuki Alto | 4,193 | 3,195 | 998 | 31% |
| Maruti Suzuki S-Presso | 3,357 | 2,769 | 588 | 21% |
| Hyundai Santro | 2,826 | 1,779 | 1,047 | 59% |
| Maruti Celerio | 888 | 10,990 | (10,102) | -92% |
| Hyundai Xcent | 1,176 | 392 | 784 | 200% |
Maruti Suzuki aiming for 2,50,000 CNG sales in FY2022
In the entire 12-month period of FY2021, MSIL clocked 1,57,954 units in sales of its CNG models and has set a sales target of 2,50,000 units by end-FY2022.
According to Shashank Srivastava, director, sales, marketing and service, "CNG has risen as a viable clean fuel alternative and is gaining a lot of momentum in the mainstream market. The key reasons for this are 'affordability and availability'."
Recognising this potential, India's largest carmaker is firming up plans to expand its CNG portfolio. "Customers have given us the feedback to offer CNG in the Vitara Brezza and Swift, and there's huge demand for CNG in the Baleno and Ciaz as well. We are examining the situation and will decide which models to offer CNG with," Srivastava told our sister publication Autocar Professional in an earlier interview.
Given the price of petrol and diesel, would you also consider a CNG-powered vehicle as your next car? Let us know in the comments below.
Also See:
New Maruti Suzuki Brezza to launch by mid-2022
2022 Maruti Suzuki Baleno: what all will be new