CNG Cars Surge Past Diesel In India Amid Fuel Price Hike And Expanding Lineup

CNG vehicles are seeing a surge in popularity among Indian car buyers, with their market share tripling over the past five years. According to a report in ET Auto, CNG vehicles accounted for 19.5% of total passenger vehicle sales in FY25, overtaking diesel cars, which maintained a steady share of 17-19%. In contrast, petrol cars have seen a sharp decline, falling to 57.7% from 76.3%.

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This shift is largely driven by individual car buyers, though the taxi segment still accounts for nearly 20% of CNG car sales. High petrol and diesel prices, an expanding network of CNG stations, and a wider range of factory-fitted CNG models have all contributed to the trend. According to the report, the number of CNG car models available has more than doubled, from 11 in FY21 to 25 in FY25, with key offerings from Maruti Suzuki, Hyundai, and Tata Motors.

Sales figures underline the growing demand. Over 839,000 CNG vehicles were sold in FY25, and that number is projected to cross one million in FY26, a 20% year-on-year increase. Meanwhile, overall car sales are expected to grow by just 1–2% in the same period.

Government efforts are also supporting the segment’s growth. Union Minister Hardeep Singh Puri recently said that the number of CNG retail outlets has grown 20-fold in the past decade. The government aims to boost the number of CNG stations from 7,400 in 2025 to 17,500 by 2030.

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Manufacturers are addressing long-standing drawbacks, such as reduced boot space, with innovations like twin-cylinder setups. Popular CNG models include the Maruti WagonR, Hyundai Exter, and Tata Punch, with Maruti Suzuki selling over 600,000 CNG units last year.

(Source: ET Auto)