CNG Vehicles’ Sales Spikes Amid Rising Diesel Prices

The effect of continuous rise in diesel prices has started showing in the automobile sector as well. After the price of one litre of diesel in Delhi has crossed Rs 80, buyers of small and mid-segment vehicles are now preferring petrol or CNG vehicles. Automobile companies are now focusing more on the production of CNG vehicles than diesel. Maruti Suzuki, the country’s largest carmaker, is the leader of the low-budget segment in the market. Maruti is now preparing to discontinue the diesel model in its hatchbacks, sedans, and some SUV models.

Statistics show that the automobile industry recorded an 18 percent decline in automobile sales in FY 2019–20, while Maruti’s diesel car sales fell by 37 percent during this period. However, this decline was not seen in the CNG variants where one lakh six thousand units sold more with a 7 percent increase. These figures show that people are now buying more CNG vehicles than diesel. In the year 2013, where Maruti had sold more than 51,000 CNG cars, by 2019, more than 76,600 cars have been sold and this year a record one lakh six thousand 443 CNG cars have been sold.

The company’s executive director of sales and marketing, Shashank Srivastava, said that diesel was cheaper at first but now the difference has been erased. This is the reason why there is no use in buying diesel cars now and the sale of diesel-driven vehicles is declining. Statistics show that diesel cars accounted for 60 percent of the company’s sales but in a few years it has come down to 20 percent. At the same time, it is less than 5 percent in small vehicles.

According to the data, in the year 2013, there was a difference of Rs 30 in the price of diesel and petrol which was reduced to Rs 7.50 in 2019 and the diesel has become costlier than petrol last month. At the same time, the price of CNG was Rs 45.60 per kg in the year 2013, which has come down to Rs 43 per kg.