CNG cars in India likely to dominate auto market

Ascending petrol prices have scoffed petrol lovers and as per the latest news, even the diesel prices have hiked to Rs. 3. Sources have reported that Insurance companies are planning to raise Insurance premium on diesel vehicles  by 30%. This scenario of Hiking fuel prices in India has created a buzz in Indian market. In this trend, now a days, car buyers are drifting more towards Compressed Natural Gas(CNG).  To grab the market share keeping the future perspective in mind, automobile companies are eyeing towards exploiting compressed natural gas (CNG) offering higher fuel efficiency and lower running cost.

Maruti Suzuki India CGM (Marketing) Shashank Srivastava said that they have already realized the forthcoming demand for the CNG car models so they have launched five petrol cars- Maruti Sx4, Alto, Maruti WagonR, Maruti Estilo and Maruti Eeco -with CNG-integrated injectors in November last year and they all are doing well, however the hike in fuel prices have increased the recent demand leading to prolongated waiting periods.

Analysis of the market trend, customer demands and their drifting interest has compelled carmakers to revamp their renowned models such as Hyundai Accent, Chevrolet Aveo , Toyota Innova and Toyota Corolla, Tata Indica and Tata Indigo by loading them with cleanest and the cheapest fuel, Compressed Natural Gas(CNG), is currently available only in Delhi, Mumbai, Agra and Gujarat.

Maruti India is eyeing to extend the CNG technology to its other models as well whereas General Motors India is planning to launch new models such as Chevrolet Beat based on the same concept. Even Hyundai Motor India, which is India's second largest carmaker is acknowledging increased demand and waiting periods for its CNG models. Hyundai director for marketing & sales Arvind Saxena himself revealed about the comparatively increased demand and waiting period for their CNG model viz Hyundai Accent.

Following statistics show a clear difference in price, running a petrol version of Maruti Sx4 cost about 4.40 per kilometre whereas a diesel version cost about 2.40 per kilometer however, a CNG version costs only 1.50 per km.  Sale of CNG-fitted cars in NCR has jumped 43% over the last year to touch 4.5-lakh mark by May-end this year.Carmakers are also looking forward to the electric cars such as Mahindra Reva that has a running cost of around 50 paise per km however, due to the huge battery cost and lack of charging options, it failed to cater large market share. So no wonder, in coming years, CNG car models are going to dominate the auto market.