The difference in prices between CNG and petrol or diesel led to a rise in sales of CNG vehicles including cars and auto rickshaws during 2023.
Data by the Union ministry of road transport and highways, indicates that some 1.8 lakh vehicles were sold during the year, up 53% as compared to 1.18 lakh units in 2022.
According to industry experts, fuel price difference, better mileage and lesser cost of owning a vehicle are among the key reasons that have led to a surge in the demand for CNG vehicles.
“The price difference between a company-fitted CNG car and a retro-fitted car is barely INR 50,000. Moreover, company-fitted CNG vehicles come with a warranty and do not require regular testing after three years of installation. As a result, overall demand for CNG vehicles has increased,” said a senior official of Regional Transport Office (RTO) – Ahmedabad. In 2023, around 1.04 lakh CNG-powered cars were sold as compared to 68,542 units in 2022.
While CNG costs INR 77.5 per kg, petrol costs INR 96.42 a litre whereas diesel costs INR 92.1 litre here.
Moreover, mileage from CNG vehicles goes as high as 28km per kg, which is a cost-effective choice.
“The cost of owning cars is increasing due to high fuel prices, high vehicle cost, more taxes and a rise in service expenses. Car owners who intend to reduce the initial and running costs of their vehicles often tend to opt for CNG vehicles. Moreover, manufacturers also opted for better technologies which led to a rise in demand for CNG cars,” said a car dealer in Ahmedabad.
According to industry experts, factors fuelling the growth of CNG vehicles include an expanded network of CNG stations and reduced carbon emissions.
After BS-VI norms were implemented, most customers stopped getting retro-fitting of CNG and instead started opting for pre-fitted vehicles for better safety.
