Maruti Suzuki, India’s leading automaker, is facing a pleasant challenge – a surge in demand for their Compressed Natural Gas (CNG) vehicles. This eco-friendly alternative fuel option is proving increasingly popular with Indian consumers, leading to a backlog of unfulfilled orders for Maruti Suzuki’s CNG car range.
Unveiling the Numbers: A Backlog Fueled by CNG
In a recent investor meeting, Maruti Suzuki revealed a significant backlog of vehicle orders. While the total number of pending deliveries sits at around 2 lakh units, a staggering over half (approximately 1.11 lakh units) are specifically for CNG models. This figure highlights the growing preference for CNG vehicles in the Indian market and the challenges Maruti Suzuki faces in meeting this surging demand.
The Ertiga Leads the CNG Charge
Among Maruti Suzuki’s CNG offerings, the Ertiga MPV reigns supreme. According to Rahul Bharti, Chief Investor Relations Officer at Maruti Suzuki, roughly 30% of all pending CNG orders pertain to the Ertiga. This popularity can be attributed to several factors. The Ertiga’s spacious and practical design makes it ideal for families, while the CNG option offers a cost-effective and environmentally friendly way to power the vehicle. Maruti Suzuki’s recent expansion of their Manesar plant production capacity with a focus on the Ertiga is a direct response to this overwhelming demand.
A Trend Confirmed: CNG Sales on the Rise
Maruti Suzuki’s experience is not an isolated case. Back in November 2023, Shashank Srivastava, Senior Executive Officer (Sales and Marketing) at Maruti Suzuki, stated that over 50% of their CNG sales originated from the Ertiga alone. This statistic underscores the growing popularity of CNG vehicles across the Indian market. Recently, Toyota, a major competitor, even reopened bookings for the CNG variants of their Rumion MPV, which is based on the Ertiga platform. This move further underlines the intensifying competition in the CNG vehicle segment.
The CNG Landscape in India: Current State and Future Outlook
The Indian automotive industry is witnessing a significant shift towards CNG vehicles. This trend is likely fueled by a combination of factors, including:
- Rising Fuel Costs: The price of traditional gasoline and diesel fuels has been steadily increasing in India, making CNG a more attractive and cost-effective alternative.
- Environmental Concerns: As environmental awareness grows, consumers are increasingly seeking eco-friendly transportation options. CNG offers lower emissions compared to traditional fuels, making it a more sustainable choice.
- Government Incentives: The Indian government has implemented policies and subsidies to promote the adoption of CNG vehicles. This further incentivizes consumers to consider CNG as a viable fuel option.
Maruti Suzuki’s Plans for the Future
Maruti Suzuki, recognizing the burgeoning demand for CNG vehicles, has taken steps to address the current backlog and cater to future needs. In the last financial year, they successfully dispatched close to 4.5 lakh CNG models and have ambitious plans to retail around 6 lakh units in the ongoing FY24-25. This represents a substantial increase in CNG production, highlighting their commitment to meeting the evolving demands of the market. Maruti Suzuki acknowledges that initial supply chain issues may have contributed to the order backlog, but they claim the situation has improved significantly.
A Market in Transition: The Rise of CNG
The rise in demand for CNG vehicles signifies a significant shift in the Indian automotive landscape. Maruti Suzuki’s struggle to meet current CNG order demands underscores this trend. With a growing focus on fuel efficiency, environmental responsibility, and government support, CNG is poised to play an increasingly vital role in India’s transportation sector. The future of the Indian car market is likely to witness further competition and innovation in the CNG vehicle segment, offering consumers a wider range of eco-friendly and cost-effective choices.
Frequently Asked Questions:
Q: Why are CNG cars becoming more popular in India?
A: There are several reasons for the growing popularity of CNG cars in India. Rising fuel costs, environmental concerns, and government incentives are all contributing factors. CNG offers a cost-effective and eco-friendly alternative to traditional fuels.
Q: What are Maruti Suzuki’s plans to address the CNG order backlog?
A: Maruti Suzuki is actively increasing CNG vehicle production to meet the growing demand. They aim to retail around 6 lakh CNG units in the ongoing fiscal year, a significant increase from the previous year. They have also acknowledged
