New Delhi: Product sales of CNG motor vehicles are projected to shoot up in robust double-digits in the present-day money 12 months on reduce operating prices and broader availability of the gasoline, even as increasing petrol and diesel price ranges harm demand from customers amid weak industry sentiment.
Maruti Suzuki, the country’s largest carmaker, expects sales of CNG motor vehicles to improve 36 for each cent to one hundred forty four,000 models in FY21. The business has eight CNG-driven motor vehicles in its portfolio and plans to make the gasoline solution readily available on all compact cars.
South Korean rival Hyundai plans to launch the gasoline solution in the Hyundai XCent sedan later this 12 months, concentrating on consumers especially in the fleet section. Concerning them, Maruti Suzuki and Hyundai offer about a dozen factory-equipped CNG models.
“Even if we do not contemplate the narrowing cost differential concerning petrol and diesel (which has activated a change in client desire for petrol motor vehicles), the cost of gasoline itself has increased substantially, which is a unfavorable for the market. Product sales volumes will get influenced if gasoline price ranges continue being substantial. This is in which CNG emerges as a practical solution,” explained Shashank Srivastava, govt director (internet marketing and sales), at Maruti Suzuki.
The expense of operating a CNG automobile is about Rs 1.five for each km, which is less than 50 percent that of petrol and diesel motor vehicles. The top quality paid out on the acquisition expense of a CNG automobile at Rs fifty,000-60,000 is reduce than Rs 1,twenty five,000-1,fifty,000 of diesel motor vehicles.
Srivastava additional, “The problem is not the acceptability but the availability of the gasoline, which hindered sales of CNG motor vehicles previously. Even so, with the authorities now pushing expansion of the distribution network, the range of CNG outlets as nicely as the range of cities the gasoline is readily available in is established to double in the following 6-7 months.”
As lots of as three,400 CNG distribution outlets are scheduled to develop into operational across 373 cities by the conclusion of the 12 months. There ended up 1,730 CNG stations in a hundred ninety cities at the conclusion of 2019.
Though Maruti Suzuki has stopped sales of diesel cars to focus on sales of petrol and CNG motor vehicles, Hyundai explained it will give all three gasoline options.
Tarun Garg, director (sales and internet marketing) at Hyundai Motor India, explained the compact car section is one particular that will possible see growth in demand from customers, be it from petrol, diesel or CNG variants.
“In CY2019, we marketed eleven,416 CNG driven models and going ahead we are optimistic about demand from customers for both diesel and CNG gasoline sorts in the in the vicinity of phrase,” Garg explained.
Hyundai at this time features CNG-driven variants in compact cars Santro, Grand i10, Grand i10 Nios and sedan Aura.
Area sales of CNG motor vehicles increased 7 for each cent to over 117,000 models in FY20. General sales of passenger motor vehicles fell eighteen for each cent to 2.seventy eight million models.
Also Read: Drop in petrol, diesel cost hole to gasoline customers’ change in the direction of petrol, CNG cars: ICRA