As of April 2022, Maruti Suzuki has an order backlog of round 3.25 lakh vehicles, and CNG-powered automobiles represent 40 % of those bookings.
Maruti Suzuki’s order guide has been seeing a gradual rise, and curiously, over 40 % of it’s for the CNG-powered fashions, accounting for 1,29,000 items out of the three,25,000 pending orders. Shashank Srivastava, senior ED, Advertising & Gross sales, MSIL stated, “CNG is doing superb numbers for MSIL, and virtually 17 % of our portfolio’s gross sales are being contributed by CNG variants. Within the fashions, the place we have now a CNG choice, the contribution is about 33 %.”
Maruti Suzuki gives CNG choices on 9 of its 15 fashions. In FY22, the model’s CNG gross sales elevated 44 %, from 1,62,000 items offered within the earlier fiscal to 2,64,000 items, with the Wagon R and Ertiga contributing a significant portion. Maruti Suzuki additionally gives CNG on the Alto, S-Presso, Celerio, Eeco and Dzire for particular person patrons, and the Tour M and Tour H3 for fleet prospects. Demand for CNG has witnessed a spike for India’s largest carmaker within the final couple of years primarily due to its full exit from the diesel phase in April 2020 and demand for extra inexpensive choices given the excessive costs of gasoline.
Maruti Suzuki’s CNG gross sales have grown from 76,000 items in FY18 to 1,05,000 items in FY19, 1,06,000 items in FY20 and 1,16,000 items in FY21. Diesel used to account for about 22 % of MSIL’s cumulative gross sales, however the firm says demand will regularly taper off as emission norms change into even tighter. “Diesel has dropped from contributing 58 % of the overall trade PV volumes about 5 to 6 years in the past, to 18 % in FY22. For Maruti Suzuki, CNG is filling that hole slightly rapidly, regardless of it being out there solely in 9 Maruti fashions,” Srivastava added.
Going ahead, Maruti Suzuki plans to supply CNG in additional premium choices such because the Baleno and Ciaz, which retail from its premium Nexa shops. It is because “working prices are extraordinarily vital even in on the greater finish of the spectrum”.
Rising costs worrying prospects
Nevertheless, whereas the set off for purchasers to change in the direction of CNG was the low gasoline value in addition to greater gasoline effectivity, current hikes in CNG have gotten patrons involved. In accordance with Delhi-based MK Kumar, shopping for a CNG-equipped automotive made absolute sense in December 2021, when he bought a Wagon R CNG, however CNG costs right now have toppled the mathematics.
CNG costs within the nationwide capital have registered a 35 % improve since December 2021, after they hovered across the Rs 53 mark, and now retail at Rs 71.61/kg, a major 35 % improve. Mumbai noticed CNG costs go up by Rs 4/kg taking the retail value to Rs 76/kg.
Whereas Kumar’s 800-odd kilometre month-to-month run has him questioning if CNG was the reply over petrol by paying an virtually Rs 1,00,000 premium, the truth that “the calculation, even at over Rs 70/kg, is in favour of CNG as the price of working a CNG car comes all the way down to roughly Rs 1.90/km, in comparison with Rs 5.20/km for a petroleum or diesel.” Therefore, “there’s nonetheless a considerable distinction”, says Srivastava. “So long as there may be excessive differential between CNG costs and petrol, the demand for CNG ought to stay sturdy. Nevertheless, we have now to see how this hole in costs strikes,” he added.
Maruti Suzuki can also be seeing a major uptick in gross sales of its CNG vehicles in South Indian cities corresponding to Bengaluru the place the offtake was once poor, “however the rising variety of CNG pumps is boosting demand,” in line with Srivastava. “We count on CNG trims to contribute even additional to our gross sales, offered the provision facet permits for an uninterrupted manufacturing of those automobiles,” Srivastava signed off.
Upcoming Maruti Suzuki SUVs, vehicles: 2022 and past
Maruti Suzuki has launched a number of fashions in the previous few months and nonetheless has some main launches lined up for this yr. Subsequent up will likely be an all-new Brezza SUV that may hit the showrooms by late June. Moreover an all-new Creta-sized midsize SUV, co-developed with Toyota, will hit the showrooms by August-September. An all-new Alto can also be within the works and that might see mild of day by late 2022.