Industry

High fuel prices spur demand for CNG vehicles, says Maruti

Representational image.   | Photo Credit: Sushil Kumar Verma

Maruti Suzuki is witnessing strong demand for CNG-powered vehicles and expects more than 80% growth in sales of such vehicles this fiscal, said Shashank Srivastava, senior executive director (Marketing & Sales). This is in the backdrop of pump prices of petrol and diesel hovering at all-time highs.

India’s largest carmaker sold about 1.6 lakh CNG vehicles in FY21, and expects this number to climb to about 3 lakh in the current financial year, Mr. Srivastava told The Hindu.

“Generally, the increase in fuel prices impacts consumer sentiment negatively. However, one good thing which has happened for us is that this has led to a huge increase in the demand for CNG vehicles as CNG prices haven't gone up as much and CNG running cost is just around ₹1.60-1.70 per kilometre,” he added.

He said that in addition to the surge in fuel prices, the increase in the network of CNG stations had also helped the growth. In the six months ended September, the company sold 83,000 CNG vehicles, accounting for 14% of total sales. CNG vehicles accounted for 11.5% of the company's sales in FY21 and 7.4% in FY20.

Asked about sales during the Navratras, Mr. Srivastava said booking and enquiries grew 11-13% compared with the same period last year, while retail sales were down by 20% because of the non-availability of stock at the dealerships amid the semiconductor shortage.

“We cannot rule out price corrections in the future,” he added.


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Printable version | Dec 7, 2021 3:28:20 AM | https://www.thehindu.com/business/Industry/high-fuel-prices-spur-demand-for-cng-vehicles-says-maruti/article37061449.ece

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