In the first half of 2023, CNG sales in India experienced a 5 percent dip compared to the previous year. While this decline might be attributed to supply constraints, leading manufacturers in the market continue to place their bets on CNG power and expect strong demand in the future. Interestingly, the top three players in the CNG space—Maruti Suzuki, Hyundai, and Tata Motors—are adopting distinct strategies to cater to CNG buyers.
Maruti Suzuki: A Comprehensive CNG Offering
Maruti Suzuki, being the market leader, holds the lion’s share of CNG vehicle sales, having sold 1.15 lakh CNG vehicles from January to June 2023. The company offers CNG across a wide range of models, from the entry-level Alto to the premium Grand Vitara. With the discontinuation of diesel variants, Maruti Suzuki is now focusing on CNG, specifically targeting buyers who prioritize cost-effective running.
The latest addition to Maruti’s CNG lineup is the Fronx. The company has a successful track record with CNG-equipped models, having sold over 1.4 million S-CNG vehicles since its first introduction in 2010. Maruti Suzuki primarily offers CNG in entry- and mid-level variants, while reserving higher variants exclusively for petrol-only versions.
Hyundai: Concentrating on Entry-Level CNG Models
Hyundai, securing the second position in CNG vehicle sales, sold 22,625 CNG vehicles during the same period. The company follows a clear strategy of offering CNG only with its entry-level models, such as the Nios, Aura, and the newly launched Exter. This approach has proven successful, with CNG accounting for 70 percent of Aura sales, close to 20 percent of Nios sales, and 22 percent of Exter bookings.
Hyundai’s COO, Tarun Garg, ruled out introducing CNG variants for higher-end models like the i20, Venue, Verna, and Creta. The company believes that customers in these segments prioritize power, torque, and initial traction, making diesel and turbo variants more suitable. Similar to Maruti, Hyundai offers CNG options in mid-level variants, not in top-spec models.
Tata Motors: Premiumizing CNG Offerings
As the third major player in the CNG market, Tata Motors has adopted a different approach by focusing on premium CNG variants. Unlike its competitors, Tata offers CNG options from base to top-spec across its model lineup. The company’s market research revealed that CNG buyers in India also seek higher-end features, leading to the introduction of premium CNG variants.
Tata Motors introduced its patented twin-cylinder layout with the CNG versions of the Tiago and Tigor, providing practicality and ample boot space. The Altroz iCNG, for instance, comes equipped with a sunroof, enhancing its premium appeal. Tata plans to expand its CNG offerings to segments where diesel engines are being phased out, indicating a future launch of the Nexon CNG variant.
Conclusion
Despite a recent dip in CNG vehicle sales in India, leading manufacturers remain optimistic about the future of CNG power. Maruti Suzuki, Hyundai, and Tata Motors have distinct strategies to cater to CNG buyers. Maruti offers CNG across its model lineup, Hyundai focuses on entry-level models, while Tata has chosen to premiumize its CNG offerings. With each company pursuing its unique approach, the CNG segment is likely to witness further growth and innovation in the coming years.
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