CNG cars outsell diesel vehicles for first time in India
What's the story
In a historic first, compressed natural gas (CNG) vehicles have outsold diesel cars in the Indian automotive industry.
The development can largely be credited to rising fuel prices and the comparatively lower operational costs of CNG cars.
As per the government's Vahan portal data, 7.87 lakh CNG passenger vehicles were sold in FY25 (April 2024-March 2025) as against 7.36 lakh diesel units.
Market shift
CNG cars now account for 20% of total car sales
The market share of CNG cars has risen to 20% of total passenger car sales, from 15% last year.
This trend shows how consumers are increasingly leaning toward more economical and cost-effective vehicle options.
Compared to petrol at ₹94.77/liter and diesel at ₹87.67/liter in Delhi, CNG is much cheaper at ₹76.09/kg, saving drivers a lot of money every time they hit the road.
CNG-run vehicles also boast a higher fuel economy.
Regulatory impact
Strict regulations on diesel also urge customers to favor CNG
Cities like Delhi have imposed stringent restrictions on diesel vehicles, allowing them to ply for just a decade.
These rules have led many buyers to consider cleaner and long-lasting fuel options like CNG.
The transition to CNG is also driven by its affordability and adherence to environmental norms, making it an attractive option for eco-conscious buyers.
Market leaders
Maruti Suzuki dominates India's CNG market
Maruti Suzuki is driving the CNG wave, contributing to nearly 70% of all CNG car sales.
The automaker has a wide portfolio of 13 CNG models including popular cars such as Brezza, Ertiga, XL6, and Grand Vitara.
In FY25 alone, one out of every three Maruti cars sold was a CNG model.
Tata Motors has also made a mark in this space with six successful models including Nexon and Punch compact SUVs.
Expansion
Hyundai expands its CNG range
Hyundai expanded its CNG range with the Exter model and is seeing a sales surge.
Although CNG cars are priced roughly ₹1 lakh higher than petrol ones, they provide better mileage which compensates for the initial cost over time.
For example, Tata Nexon CNG starts at ₹9 lakh against ₹8 lakh for petrol version while Maruti Brezza CNG (LXi) costs ₹9.64 lakh against ₹8.69 lakh for petrol version with fuel efficiency of 25km/kg vs 17km/l, respectively.