New Delhi: Sales of CNG cars are projected to shoot up in solid double-digits in the latest economical year on decrease operating fees and wider availability of the fuel, even as increasing petrol and diesel prices hurt need amid weak current market sentiment.
Maruti Suzuki, the country’s most significant carmaker, expects product sales of CNG cars to expand 36 for every cent to 144,000 units in FY21. The firm has eight CNG-driven cars in its portfolio and programs to make the fuel alternative accessible on all smaller cars.
South Korean rival Hyundai programs to launch the fuel alternative in the Hyundai XCent sedan afterwards this year, concentrating on consumers specifically in the fleet section. In between them, Maruti Suzuki and Hyundai promote about a dozen factory-equipped CNG designs.
“Even if we do not think about the narrowing selling price differential among petrol and diesel (which has triggered a shift in purchaser choice for petrol cars), the selling price of fuel alone has elevated substantially, which is a destructive for the sector. Sales volumes will get affected if fuel prices stay higher. This is where CNG emerges as a feasible alternative,” said Shashank Srivastava, executive director (marketing and product sales), at Maruti Suzuki.
The value of operating a CNG automobile is about Rs 1.five for every km, which is fewer than half that of petrol and diesel cars. The quality compensated on the acquisition value of a CNG automobile at Rs fifty,000-60,000 is decrease than Rs 1,25,000-1,fifty,000 of diesel cars.
Srivastava added, “The difficulty is not the acceptability but the availability of the fuel, which hindered product sales of CNG cars before. Nonetheless, with the authorities now pushing expansion of the distribution network, the selection of CNG retailers as properly as the selection of cities the fuel is accessible in is established to double in the up coming six-7 months.”
As several as 3,four hundred CNG distribution retailers are scheduled to come to be operational across 373 cities by the conclusion of the year. There were being 1,730 CNG stations in a hundred ninety cities at the conclusion of 2019.
Although Maruti Suzuki has stopped product sales of diesel cars to focus on product sales of petrol and CNG cars, Hyundai said it will give all a few fuel solutions.
Tarun Garg, director (product sales and marketing) at Hyundai Motor India, said the compact automobile section is 1 that will probably see expansion in need, be it from petrol, diesel or CNG variants.
“In CY2019, we offered eleven,416 CNG driven designs and heading forward we are optimistic about need for each diesel and CNG fuel types in the near term,” Garg said.
Hyundai at the moment delivers CNG-driven variants in smaller cars Santro, Grand i10, Grand i10 Nios and sedan Aura.
Nearby product sales of CNG cars elevated 7 for every cent to more than 117,000 units in FY20. Over-all product sales of passenger cars fell eighteen for every cent to 2.78 million units.
Also Go through: Drop in petrol, diesel selling price hole to fuel customers’ shift to petrol, CNG cars: ICRA