India’s largest automaker, Maruti Suzuki, faces an abundance problem. As gasoline and diesel prices remain high, even after the excise duty cut on November 4, demand for Maruti’s CNG-powered cars has skyrocketed.
However, the company, like other automakers in India, is grappling with a mismatch between supply and demand due to the continuing shortage of semiconductors which has impacted its ability to meet demand. growing customers for its models, especially those powered by much cheaper CNG. .
Maruti Suzuki currently has an order book of 280,000 cars, of which more than 120,000 reservations, or 43% of all pending orders, relate to its CNG models.
Strong demand for Ertiga and Wagon R CNG
According to the company, the seven-seater Ertiga CNG holds the highest share of 50 percent, or more than 60,000 units, of the total number of CNG cars on hold.
Next is the hugely popular urban runabout – Wagon R CNG – which follows closely behind with a 30 percent share or 36,000 pending orders for its CNG versions that have yet to be delivered to customers.
The remaining 20% includes other Maruti Suzuki models offered with a dual-fuel CNG option. These cars include the Alto, S-Presso and Eeco available for private customers, as well as the Super Carry, Tour S and Tour M for the fleet segment.
CNG sales up 56% year-to-date
According to industry data, CNG car sales in India saw smart growth of 56% between April and November 2021 with a total of 136,357 PV sold (April-November 2020: 87,634). While cars with 88,180 units recorded 45% growth, they accounted for 65% of total PV sales. Light commercial vehicles with 32,444 units saw a 90% year-over-year increase and accounted for 24% of the share, while vans with 15,733 units (up 64%) made up the remainder.
The significantly improved performance of the three sub-segments is largely reflected in the growing market share of CNG in the photovoltaic segment: cars at 9.87%, UV at 3.50% and vans at 24%. Overall, the share of CNG in the photovoltaic market has increased from 6% a year ago to 7.50%.
The big winners in the CNG PV market are Maruti Suzuki and Hyundai. Of the 11 CNG models on sale in India, seven Maruti models – Alto, S-Presso, Celerio, Wagon R, Dzire, Ertiga and Eeco – represent 110,459 units or 81% of the total of 136,357 units sold in the first 8 month of FY2022. Maruti Suzuki had recorded a growth of 45% year-on-year (April-November 2020: 76,377 units).
During the entire 12-month period of fiscal 2021, MSIL recorded 157,954 units of sales of its CNG models and has set a target of reaching 250,000 units by the end of the year. ‘fiscal year 2022.
According to Shashank Srivastava, Director of Sales, Marketing and Service, “CNG has become a viable alternative to clean fuels and is gaining momentum in the mainstream market. The main reasons are “affordability and availability”. “
Recognizing this potential, India’s largest automaker is firming up plans to expand its CNG portfolio. “Customers have given us feedback to offer CNG in the Vitara Brezza and Swift, and there is also a huge demand for CNG in the Baleno and Ciaz. We are reviewing the situation and will decide which models to offer CNG with.” , Srivastava said. Automotive professional in a previous interview.
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CNG represents 43% of the order book of 280,000 Maruti Suzuki orders
Ertiga CNG commands the highest share of 50% or more than 60,000 units, followed by Wagon R CNG with 36,000 reservations.