CNG gains on diesel as its share of India's SUV sales keeps rising

what happened

According to Moody's, 15.3% of sport utility vehicles (SUVs) registered in India in the first half of the current financial year ran on compressed natural gas (CNG). That was more than half the diesel share of 28% and one and a half times the share of battery-electric vehicles at 9.9%. CNG's share was 13.2% last fiscal year, and five years ago, in fiscal 2023, when Maruti Suzuki launched the Brezza with a factory-fitted CNG kit, it was only 0.2 points lower.

Senior industry executives say the growth came even though the number of CNG models stayed at nine. Maruti Suzuki reported CNG vehicle sales up 44%, and in entry and compact SUVs CNG accounts for as much as 40% of its demand. At Hyundai Motor India, SUVs make up more than a third of CNG vehicle sales, and the company plans to add the Bayon to its CNG lineup in January.

why it matters

For the car market, this suggests buyers are looking for cheaper-to-run fuel, which could shift demand away from diesel toward gas. For energy markets, it points to growing natural gas use in Indian transport, a factor for the domestic gas market.

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