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In a notable change in consumer trends, compressed natural gas (CNG) vehicles have outsold diesel cars for the first time in FY25.
In what can be seen as a major shift in consumer preference, compressed natural gas (CNG) vehicles have outsold diesel cars for the first time in FY25. Driven by a combination of expanding manufacturer offerings, rising fuel prices, and significantly lower running costs, CNG has emerged as the preferred alternative for cost-conscious consumers.
According to Vahan data, a total of 787,724 CNG passenger vehicles were sold in FY25, overtaking diesel car sales at 736,508 units. This marks a significant turnaround for CNG technology, which has steadily gained ground in the past few years. The segment’s share of overall passenger vehicle sales jumped to 20% this fiscal, up from 15% in FY24.
Industry experts attribute this shift to a combination of market dynamics and changing consumer priorities. With fuel prices remaining high, CNG at Rs 76.09/kg in Delhi versus Rs 94.77/litre for petrol and Rs 87.67/litre for diesel, CNG’s cost-effectiveness is drawing a growing number of buyers. Moreover, diesel vehicles are facing headwinds from regulatory restrictions, such as the 10-year usage limit in cities like Delhi.
“Customers today are looking for smart choices that deliver long-term value. CNG is now a mainstream choice, not just a niche option,” said an executive at a leading carmaker.
Maruti Suzuki has been at the forefront of the CNG surge, accounting for nearly 70% of all CNG car sales. The company offers 13 CNG models, including popular variants of the Brezza, Ertiga, Grand Vitara, and XL6. In FY25, one out of every three Maruti cars sold ran on CNG. Tata Motors, another key player, followed closely, offering six CNG models and seeing one in seven of its sales coming from the segment. The company has introduced CNG variants in its compact SUV lineup, including the Nexon and Punch.
Hyundai Motor has also expanded its CNG portfolio, adding the Exter to its offerings, and witnessing a notable uptick in CNG sales contribution. Other manufacturers are following suit, launching premium and SUV models with factory-fitted CNG kits, which are helping break the perception of CNG as limited to budget cars.
Carmakers across the board have signaled their commitment to the fuel. “We will offer all technologies, EV, hybrid, and CNG, and let the customer choose,” Partho Banerjee, senior executive officer, marketing and sales at Maruti Suzuki India, said recently. “In many cases, customers prefer CNG because the cost of ownership is much, much lower,” he had added.
Though CNG variants typically cost about Rs 1 lakh more than their petrol counterparts, the fuel efficiency advantage offsets the upfront premium. For instance, the Tata Nexon CNG variant starts at Rs 9 lakh, compared to Rs 8 lakh for petrol. The Maruti Brezza LXi is priced at Rs 9.64 lakh for the CNG variant and Rs 8.69 lakh for petrol. Despite similar sticker prices, CNG offers better efficiency, 25 km/kg for the Brezza, versus 17 km/litre for petrol, making it a more economical choice over time.
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This article was first uploaded on April eight, twenty twenty-five, at thirty-two minutes past five in the morning.
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