CNG car sales to cross 1 million, overtake diesel

June 10, 2025 | 0 Comment

CNG-powered vehicles are rapidly gaining ground in India’s auto market, with their share in passenger car sales tripling in five years. Driven by high fuel costs, improved infrastructure, and affordable options, CNG cars are set to cross the 1 million sales mark in FY26—outpacing diesel models for the first time.

Car buyers in India are increasingly choosing compressed natural gas (CNG) vehicles, thanks to high petrol and diesel prices, more vehicle options, and a growing network of CNG stations.

In the past five years, the share of CNG vehicles in total passenger car sales jumped from 6.3% in FY20 to 19.5% in FY25, overtaking diesel cars. During the same period, petrol’s share fell from 76.3% to 57.7%, while diesel’s share stayed between 17% and 19%.

CNG vehicle sales are expected to cross 1 million units for the first time in FY26—a 20% rise over 839,000 units sold in FY25—even as total car sales are likely to grow just 1–2%, industry experts say.

Tata Motors’ Vivek Srivatsa noted that CNG is the “one category which has surprised everyone,” with more products and better availability fueling growth. Although the taxi segment still makes up about 20% of CNG car sales, individual buyers are the main drivers of this surge.

Carmakers like Maruti Suzuki, Hyundai, Tata, and Nissan have introduced more CNG options. The number of CNG vehicle models has more than doubled from 11 in FY21 to 25 in FY25. The number of CNG filling stations has also grown significantly—20 times in the past decade—reaching 7,400 in 2025, with a goal of 17,500 by 2030.

Despite the government’s push for electric vehicles (EVs), buyers find CNG cars more affordable than EVs and cheaper to run than petrol or diesel. Boot space loss due to the gas cylinder remains a drawback, but companies like Hyundai and Tata have addressed this with twin-cylinder designs.

Maruti Suzuki sold 600,000 CNG vehicles in FY25, and aims for 700,000 in FY26. One in three Maruti cars sold last year ran on CNG, highlighting its popularity in the sub-₹11 lakh segment.

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