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Maruti Focuses On CNG Driven Small Cars

August 23,2019

The current emission norms and the need for a cleaner fuel, which is driving the hybrid vehicles & EV space will be catered by Maruti in the bigger cars segment and the company is all set to focus on CNG as a green fuel for its small car segment.

The way forward for the company is that they have decided to launch CNG variants for all small cars in their portfolio in coming time. RC Bhargava, Chairman Maruti Suzuki recently, echoed the same information. As of now Maruti’s has CNG option in 50% plus of their models. Technically, CNG is a greener fuel compared to gasoline as its particulate matter and CO2 emissions are much lower. Pricewise also it is affordable and has good acceptance among customers.

The current CNG distribution infrastructure is quite low at 1700 stations across India and is expected to reach to 10,000 stations by 2030. The PM of India has already unveiled the 9th and 10th bidding rounds for the same.

The company plans to sell 1.5 lakh units of CNG vehicles in current fiscal, up from 74K sold in FY1617. The challenge lies in strengthening the penetration of distributions infrastructure for CNG, which is expected to pick up in next 1 to 3 years. The gap available for growth of CNG as fuel is immense as currently only 5% of companies sale is from CNG vehicles. The company believes that 30 to 40% of cars in future, would be powered by CNG as it cheaper than gasoline.

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Autojobs4ublog Team