July 21, 2024

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Maruti looking to cash in on increased demand for CNG vehicles, Auto News, ET Auto

Another reason for the rise in demand for CNG vehicles is the increase in the number of cities under CNG stations network.
An additional reason for the rise in demand for CNG autos is the improve in the selection of towns less than CNG stations network.

New Delhi: Amid skyrocketing selling prices of petrol and diesel, Maruti Suzuki India (MSI) is on the lookout to hard cash in on the accelerated demand for its CNG autos, anticipating virtually fifty for each cent expansion in the ongoing fiscal yr, according to a senior corporation formal. The corporation, which gives CNG options in eight types out of a total of 14 accessible in the Indian sector, is also actively doing work to develop the portfolio.

“This yr CNG (autos) in the business has developed almost 37 for each cent at a time when the in general expansion is adverse (eighteen for each cent decrease) in the April-January period of time. It signifies CNG is rising pretty very well,” Maruti Suzuki India Government Director (Advertising and marketing & Gross sales) Shashank Srivastava informed.

Describing why the demand for CNG autos has absent up, he explained as the selling prices of petrol and diesel as gas have absent up considerably, the jogging charges have also improved.

“The price tag of jogging CNG is only Rs one.five for each km whereas for petrol and diesel it is almost Rs 4 for each km. Men and women are now preferring CNG as the jogging price tag is pretty reduced so there is a expansion in profits of CNG autos,” Srivastava explained.

Citing Maruti Suzuki’s possess case in point, he explained, “In the types that we have CNG, the penetration stage is almost 21 for each cent. Our CNG volumes previous yr had been all-around one,06,000 models. If you seem at 2020-21 we have now crossed one,19,000 models and we will end up the yr with about one,55,000 models. It will be almost a fifty for each cent improve.”

In Mumbai and Pune, the CNG penetration of Celerio and WagonR is almost 70 for each cent. In Delhi, CNG penetration of WagonR is fifty for each cent, he additional.

Stating that the expansion of CNG profits was eighteen for each cent previous yr, Srivastava explained in the previous five a long time, MSI’s CNG vehicle profits had been at about seventy five,000 models in 2016-seventeen, which grew to about 106,000 models previous fiscal yr.

An additional reason for the rise in demand for CNG autos is the improve in the selection of towns less than CNG stations network, he explained introducing four a long time in the past, the selection of CNG stations in India was one,200, which has doubled to two,four hundred at present.

“By up coming yr the selection of stations will be 4,five hundred. So if you seem at it, in four a long time it will go up from one,200 to 4,five hundred. Also the selection of towns protected will go up. It has now absent up from a hundred forty five four a long time back again to 240 this yr,” he explained.

Moreover, Finance Minister Nirmala Sitharaman has explained in the Price range that the federal government would improve it to one hundred extra towns. In March 2022, it is predicted that there will be almost 375 towns protected, he observed.

“The network is also expanding. Thus the availability of CNG is receiving better…The federal government is also encouraging by growing the CNG network. We can sell in new towns where by CNG was not formerly accessible. Then the waiting time for CNG filling is also going down as the selection of stations are going up,” he explained.

Also, he explained consumer’s concerns above basic safety and general performance of CNG autos have been tackled with the corporation featuring factory equipped autos where by “there is no compromise in general performance as very well as basic safety. Now the clients know that there is no variation and the jogging price tag is reduced”.

When requested if Maruti Suzuki is planning to tap the favourable disorders for CNG autos by expanding the selection of choices, he explained,”We have a plan to develop the CNG portfolio, to get CNG in other types also. We have 14 makes out of which eight have CNG and above a period of time of time we are striving to get CNG in other types also.”

Whilst he did not share details, Srivastava explained,”We have a time-dependent plan to get other autos into the CNG. We are actively doing work on it. CNG is a pretty excellent possibility when the petrol and diesel selling prices are pretty large. We are pretty focussed on this and customers are reacting pretty positively to this as the numbers display.”