Hyundai Motor India’s Bold Bet on CNG Vehicles: Meeting the Surge in Demand with Unstoppable Confidence

Hyundai Motor India Ltd (HMIL) is significantly investing in its CNG vehicle offerings, experiencing increasing demand in both rural and urban markets. The company currently provides CNG options for three models: Grand i10 NIOS, AURA, and EXTER. Hyundai has seen its CNG models’ contribution to domestic sales climb from 9.1% in FY22 to 11.4% in FY24, reaching 12.8% for the April-October period of the current fiscal year. Overall, Hyundai sold 354,000 units during this time. Tarun Garg, HMIL Whole-time Director and COO, credits this demand to the growing network of CNG stations, expected to reach 17,500 by 2030.

To enhance CNG vehicle sales, Hyundai launched the ‘Hy-CNG Duo’ system, featuring dual cylinders for better boot space and fuel efficiency. This move helped Hyundai achieve a record CNG penetration of 14.9% in October 2024, with notable percentages in models like the EXTER (39.7%) and AURA (90.6%). The company has observed CNG penetration rates increase from 8.8% to 10.7% in urban markets and from 7.1% to 12.0% in rural markets from FY22 to FY24. Major cities like Pune, New Delhi, and Ahmedabad lead CNG sales, while Maharashtra, Gujarat, and Uttar Pradesh are the top states.

Hyundai’s rivals, Maruti Suzuki India and Tata Motors, are also focused on growing their CNG offerings. Maruti Suzuki aims to sell 600,000 CNG vehicles in FY25, up from 489,000 in FY24. Tata Motors has seen a rise in CNG penetration in its passenger vehicle segment to 21% in the first half of the fiscal year, up from 16% in FY24.

Original Story https://www.livemint.com/news/india/hyundai-motor-india-bets-on-cng-vehicles-sees-accelerated-demand-11731821335789.html
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