Key highlights
- CNG vehicle sales have surged 300% in the last five years, with market share rising from 6.3% in FY2020 to 19.5% in FY2025.
- CNG cars now outsell diesel models, whose market share has remained stable at 17-19%.
- Maruti Suzuki leads the segment, selling over 600,000 CNG cars last year, with expectations to cross 700,000 units in FY2026.
The demand for CNG cars has skyrocketed in India, with sales growing 300% over the last five years. According to the Society of Indian Automobile Manufacturers (SIAM), the market share of CNG models has increased from 6.3% in FY2020 to 19.5% in FY2025, reflecting a major shift in consumer preferences.
Why are more buyers choosing CNG cars?
Several factors have contributed to the rapid adoption of CNG cars:
- Lower running costs – CNG is significantly cheaper than petrol and diesel, making it an attractive option for cost-conscious buyers.
- Environmental benefits – CNG emits less CO₂ and particulate matter, aligning with India’s push for cleaner mobility solutions.
- Expanding infrastructure – The number of CNG refueling stations has grown, improving accessibility for consumers.
- Government incentives – Policies promoting alternative fuels have encouraged automakers to expand their CNG vehicle offerings.
Further more, new government policies like the recent government ban on petrol and diesel fleets in Delhi will lead to more CNG vehicle sales.
Market leaders and future growth
Maruti Suzuki remains the dominant player in the CNG segment, selling over 600,000 units last year. The company expects to cross 700,000 units in FY2026, with CNG models accounting for 34% of its total sales.
Tata Motors has also seen strong demand, particularly for its twin-cylinder CNG technology, which enhances boot space and practicality. Meanwhile, Hyundai and Toyota continue to expand their CNG portfolios, targeting urban commuters and fleet operators.
Industry experts predict that CNG vehicle sales will hit 1 million units this fiscal year, with the segment growing by 20% annually.
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