The Financial year 2020-21 was full of ups and downs, with the industry facing a zero-sale month at the start in April 2020 and then ending to great sale month in March 2021, and amongst these highs, there also was the sales of CNG vehicles which achieved its all-time high in FY2020-21. Taking a look at the total sale of CNG cars which stood at 1,71,288 units that translate to YoY growth of 49.22%, compared to last financial year sale of 1,14,791 and amongst these 1,48,211 units were of Maruti Suzuki India Limited, which recorded a YoY growth of 41.6%.
Other than Maruti Suzuki, Hyundai also made some progressive sales for the CNG powered vehicles and recorded a sale of 23,077 units which is a 132.4% jump from the previous year FY2019-20 sale of 9,930. One thing to be noted is that Maruti Suzuki and Hyundai are the only Indian car manufacturing firms that produce CNG powered cars.
The main reason for this sudden growth may be the sudden increase in fuel prices which in some cities have even cross the 100 rupees per litre mark and the only two alternatives are the battery-powered cars and the CNG powered cars, however, not everyone can afford the battery-powered EV cars as the fuel might be cheaper but the cost of the battery makes the overall price increase by 1.5 times. So, the other alternative, CNG powered cars are best fitted for customers who want cheaper fuel with better mileage, which makes the overall cost of running the car even lower.
One other reason for choosing CNG over EV cars is the availability of Fuel stations, where the government is still planning on increasing the EV stations, the CNG fuel stations are already well placed and the initiative of the government to also increase the CNG stations is just a cherry on top.