Hyundai bets on CNG vehicles, sees rising demand in rural and urban India

Hyundai Motor India Ltd is betting big on CNG fuel option with sales of models equipped with the technology witnessing increasing demand across rural and urban markets in the country, according to a top company official.

The company, which currently offers CNG option in its three models -- Grand i10 NIOS, AURA and EXTER -- has seen an increase in contribution of the CNG models to its domestic sales to 11.4 per cent in FY24 from 9.1 per cent in FY22.

So far in the April-October period this fiscal, the contribution of CNG models to the company's domestic sales has risen to 12.8 per cent. Its overall vehicle sales across different fuel options stood at 3.54 lakh units in the domestic market during the period.

"At present, India already has more than 7,000 CNG stations and aim is to have approximately 17,500 CNG stations by 2030 which will further fuel the CNG demand," HMIL Whole-time Director and COO Tarun Garg said on the reasons behind the company's bullishness on CNG models.

With a view to increase CNG vehicle sales, HMIL introduced the 'Hy-CNG Duo' -- with a dual-cylinder system offering ample boot space and higher fuel efficiency -- in its EXTER and Grand i10 NIOS models.

"The introduction of Hy-CNG Duo is aimed to meet customer demands of providing ample space with high mileage and safety. This has helped us achieve the highest ever CNG penetration of 14.9 per cent in October 2024.

"Company-fitted CNG system with three years warranty assures maximum assurance for customers," he added.

The 'Hy-CNG Duo' is also equipped with an integrated ECU for faster and seamless shifting between petrol and CNG fuel options.

In October this year, HMIL had clocked 8,261 units of CNG models in domestic sales with CNG penetration in its compact car Grandi10 NIOS at 17.4 per cent, 39.7 per cent for mini SUV EXTER and 90.6 per cent for compact sedan AURA.

HMIL said it has also witnessed the penetration of CNG models grow from 8.8 per cent in FY22 to 10.7 per cent in FY24 in the urban markets, and from 7.1 per cent in FY22 to 12.0 per cent in FY24 in rural markets.

As of October this fiscal, HMIL's urban penetration of CNG models stood at 12.3 per cent while it was at 14.6 per cent in the rural market.

The company's top three cities for CNG vehicle sales in the January to October period of 2024 were Pune, New Delhi and Ahmedabad, while in terms of states it was Maharashtra, Gujarat and Uttar Pradesh.

HMIL is joining rivals Maruti Suzuki India and Tata Motors which have also focussed on enhancing sales of their CNG models.

In fact, Maruti Suzuki India has set a target of selling 6 lakh CNG vehicles in FY25, up from 4.89 lakh units in FY24.

Tata Motors' passenger vehicles segment has also witnessed increasing penetration of CNG vehicles in its overall portfolio in the first half of the fiscal to 21 per cent, up from 16 per cent in FY24.