Why More Indians Are Choosing CNG Cars Now: Detailed

Big jump in CNG car sales across India. Understand the reasons behind this trend and how it impacts car buyers and the environment.

In India, more people are buying cars that run on CNG (Compressed Natural Gas). This is not just a small trend; it’s a clear shift in what Indian car buyers want. They are choosing CNG cars over traditional petrol and diesel models, and there are strong reasons behind this change.

The Numbers Speak Loud and Clear

Looking at the sales figures, the rise of CNG cars is very clear. In the financial year 2025 (FY2025), nearly one out of every five cars sold in India was a CNG model. To be exact, CNG cars made up 19.5% of all car sales. This is a huge jump from just five years ago, in FY2020, when only 6.3% of cars sold were CNG. This means the market share for CNG cars has more than tripled in a short time.

At the same time, the demand for petrol cars has gone down quite a bit. Their share in sales dropped from 76.3% in FY2020 to 57.7% in FY2025. Diesel cars, which were already less popular, have stayed around 17-19% of the market since 2020.

Experts believe that the financial year 2026 (FY2026) will set a new record for CNG cars. For the first time ever, more than one million CNG cars are expected to be sold in a single year. This would mean about a 20% growth in sales compared to FY2025, when over 8.39 lakh (839,000) CNG cars were sold.

Our Analysis: These numbers are not just statistics; they tell a story of how Indian car buyers are changing their priorities. The rapid growth of CNG sales, while petrol sales are falling, shows that people are looking for more affordable and cleaner ways to travel. This is a big move away from what was once the norm, highlighting a practical shift in consumer behavior driven by economic realities.

Why the Shift to CNG?

Several factors are driving this growing popularity of CNG cars:

• Rising Fuel Costs: The prices of petrol and diesel have been going up steadily. CNG is much cheaper, making it a more budget-friendly option for daily commuting and long drives. This directly helps car owners save money on fuel bills.

• Government Push for Cleaner Air: The Indian government is actively promoting cleaner fuels, especially in big cities where pollution is a major concern. This includes rules that sometimes make diesel cars less attractive in metro areas. CNG cars produce fewer harmful emissions, which aligns with the government’s goals for better air quality.

• Cost Savings and Environment Benefits: CNG cars offer a win-win situation. They are cheaper to run than petrol or diesel cars, and they also produce less pollution. This combination of saving money and being environmentally friendly is very appealing to many buyers.

• More Choices from Car Makers: Car companies like Maruti Suzuki, Tata Motors, and Hyundai have noticed this change in customer preference. They are now offering many more CNG car models. The number of CNG models available in the market has more than doubled, from 11 in FY2021 to 25 in FY2025. This wider choice makes it easier for buyers to find a CNG car that fits their needs and budget.

• Solving Old Problems: Automakers are also working hard to fix the common issues that CNG cars used to have. For example, older CNG cars often had very little boot space because of the large gas cylinder. Now, companies like Tata Motors and Hyundai are using two smaller cylinders instead of one big one, which helps to free up more boot space.

• More CNG Stations: The government is also playing its part by expanding the network of CNG filling stations across the country. They have a big goal to increase the number of CNG pumps from 7,400 to 17,500 by the year 2030. This means it will become much easier for CNG car owners to find fuel, reducing worries about range.

Our Analysis: The rise of CNG cars is not just a simple trend; it’s a complex change driven by many factors working together. It’s about people needing to save money, the government wanting cleaner air, and car companies making better CNG options. The increase in available models and the growing number of filling stations are directly helping to overcome the old problems with CNG cars, making them a much more practical and attractive choice for a larger number of buyers.

Who is Leading the CNG Charge?

Several car manufacturers are actively involved in the CNG market:

• Maruti Suzuki: This company offers the widest range of CNG models in India. Their CNG lineup includes popular cars like the Alto, S-Presso, Wagon R, Celerio, Eeco, Swift, Brezza, Dzire, Baleno, Fronx, Ertiga, XL6, and Grand Vitara.

• Tata Motors: Tata has also jumped into the CNG market in a big way. Most of their popular models, like the Tiago, Tigor, Punch, Altroz, and Nexon, are available with a CNG option. They are even testing a CNG version of their upcoming Curvv SUV.

• Hyundai: While Hyundai has a smaller number of CNG models compared to Maruti Suzuki and Tata, they do offer CNG options for the Grand i10 Nios, Aura, and Exter.

Our Insight: Maruti Suzuki has clearly taken the lead in the CNG segment, using its strong presence in the mass market to offer many choices. Tata Motors is also showing a strong commitment to CNG by adding it to almost all its popular cars. Hyundai, though currently having fewer options, will likely expand its CNG offerings as the market continues to grow.

CNG: A Bridge to a Greener Future

In conclusion, the increasing popularity of CNG cars in India is a significant development. It offers a practical and growing solution for car buyers who want to save money on fuel and contribute to a cleaner environment. While electric vehicles (EVs) are seen as the long-term solution for truly green transportation, CNG cars play a very important role right now. They act as a bridge, helping India move towards cleaner mobility, especially as petrol and diesel cars are still widely used.

Overall Insight: The growth of CNG cars is more than just about saving fuel; it’s about finding a practical way to make transportation more sustainable in a country like India. It provides an immediate and affordable way to reduce pollution and running costs, making it a key part of India’s journey towards a cleaner and more efficient transport system.