Printed On Nov 29, 2021 05:06:00 PM
CNG autos gross sales noticed a 66 % 12 months on 12 months development within the first seven months of FY2022, however might gradual if costs proceed to rise.
If excessive petrol (Rs 109.98 a litre) and diesel (Rs 94.14 a litre) costs will not be sufficient, motorists will now should deal with fast-rising costs of CNG. The Mahanagar Fuel Ltd (MGL), one among India’s main fuel distribution firms, has hiked CNG costs to Rs 61.50 per kg efficient from midnight of November 26.
- Costs hiked owing to importing CNG to satisfy demand
- Pure fuel world costs have elevated
- Worth now at Rs 61.50 per kg (Mumbai) from 47.90 per kg initially of 2021
It’s understood that the newest hike is because of MGL sourcing extra market-priced pure fuel to satisfy rising demand of the CNG and PNG (piped pure fuel) market in India. Additionally, world costs of pure fuel have elevated, resulting in MGL’s latest hikes.
That is the third value improve in 5 months and its fourth this 12 months. The November 26 hike constitutes a 7 % improve from the Rs 57.54 per kg value on October 4, and is an 18.31 % improve from the Rs 51.98 per kg on July 13, 2021. The earlier hikes this 12 months have been on February eight to Rs 49.40 per kg from Rs 47.90 (when CNG costs have been lowered on October 5, 2020). This implies within the calendar 12 months up to now, CNG costs (in Mumbai) have risen by as a lot as 28 %, inflicting a lot concern to private transport homeowners in addition to industrial automobile operators. And it’s not excellent news for CNG automobile producers both.
CNG automobile gross sales on the upswing this fiscal
Given CNG’s appreciable value distinction to petrol and diesel, it’s not shocking there’s a shopper shift to the greener gas. A look on the knowledge desk for gross sales of passenger autos reveals the sensible rise in demand for CNG autos.
Gross sales of CNG-powered PVs have clocked 66 % year-on-year development to 1,19,372 models within the first seven months (April-October) of FY2022. Whereas vehicles with 77,451 models posted 57 % development and accounted for 65 % of whole gross sales, UVs with 26,783 models notched 90 % YoY improve and accounted for 22 % of the share; vans with 15,138 models (up 85 %) made up the remainder with a 12.6 % share. The much-improved efficiency of all three sub-segments is mirrored within the rising CNG market share within the total PV section: vehicles to 9.87 %, UVs to three.50 % and vans to 24 %. Total, the CNG share within the PV market has grown to 7.40 % from 6.03 % a 12 months in the past.
Each Maruti Suzuki and Hyundai India are extraordinarily bullish on CNG automobile gross sales. Of the 11 fashions on sale, Maruti Suzuki India, with its seven fashions – Alto, S-Presso, Celerio, Wagon R, Dzire, Ertiga and Eeco – accounts for 82,351 models or 81 % of the whole 1,01,412 models bought in H1 FY2022. The opposite CNG participant, Hyundai, with Four fashions – Grand i10, Santro, Aura and Xcent – bought the remaining 19,061 models. Whereas Maruti Suzuki had notched 80 % YoY development (H1 FY2021: 45,817 models), Hyundai Motor India has achieved even higher – 238 % YoY development (H1 FY2021: 5,631 models), albeit on a decrease year-ago base than the general PV market chief. Tata Motors, which is on a roll within the PV section with a robust exhibiting month after month, doesn’t have a CNG automobile in its portfolio but. However its entry into the CNG section is imminent.
Whereas it’s tough to say whether or not CNG costs will maintain transferring upwards persistently, given the rising demand for the gas in India each for motoring and family utilization, the actual fact stays that CNG automobile operating prices are considerably decrease in comparison with petrol or diesel as a CNG automobile inherently offers higher gas economic system when pushed on CNG.
Just a few challenges stay although. Refuelling takes longer resulting from a fewer variety of CNG stations and freeway driving requires extra planning by way of attempting to take a route with a CNG station. However automobile consumers, who’ve heavy day-to-day utilization, discover that it makes pockets sense in selecting the CNG gas possibility.
There’s additionally the electrical automobile possibility. With the central and state governments placing their shoulder to the EV wheel with a bunch of subsidies and sharpened deal with enhancing EV charging infrastructure, it’s doubtless the CNG sector’s loss could possibly be the EV section’s acquire.