CNG cars, SUVs drive auto sales in 2024

The impressive growth in sales of compressed natural gas (CNG) vehicles and sports utility vehicles (SUVs) led to an impressive 4.3 million car sales in the calendar year (CY2024). In December, the passenger vehicles experienced a 10-12% increase in sales, totalling 320,000 units.
 
Maruti Suzuki saw a significant boost in sales of CNG-powered cars by 26.3% during the April to December period in 2024, reaching a total of 453,000 units. Partho Banerjee, Senior Executive Officer of Marketing and Sales at Maruti Suzuki India Limited (MSIL) noted that CNG vehicles now represent 38.7% of the company’s portfolio.

Maruti Suzuki aims to achieve 6 million CNG vehicle sales by the end of FY25. For the April to December period, the company recorded a 5% increase in total sales, including exports, totalling 1,629,631 units, compared to 1,551,292 units during the same period last year.
 
Similarly, Tata Motors reported sold 139,829 units in the October to December quarter of FY25, with significant growth in CNG-powered vehicles. “We registered a substantial 77% growth in our CNG volumes, selling over 120,000 CNG vehicles in CY24,” stated Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd.

He added, “In Q3FY25, we recorded wholesales of 139,829 units, reflecting a 1% growth compared to Q3FY24, with retail sales growing by 6% over the same period last year. New product launches, including Curvv, Curvv.ev, Nexon CNG, and Nexon. EVs have been well received.”
 
Hyundai Motor India Limited, the recently-listed South Korean automaker, said that CNG vehicles contributed 13.1% of its domestic sales in CY24. “The introduction of our innovative Hy-CNG Duo technology in 2024 resonated well with buyers, resulting in the highest CNG contribution of 13.1% to HMIL’s domestic sales in CY24, compared to 10.4% in CY23,” commented Tarun Garg, Whole-time Director and Chief Operating Officer at HMIL.
 
While the rise in CNG vehicle sales has significantly influenced automakers’ robust sales in CY24, the strong demand for sports utility vehicles (SUVs) has also played a crucial role. Maruti Suzuki’s SUV portfolio grew by 21% in CY24. Similarly, Tata Motors’ SUV portfolio grew by 19% in CY24. Meanwhile, Mahindra & Mahindra witnessed a growth of 18% in its SUV portfolio to 402,360 units in December as against 333,777 units in the same period last year.