Hyundai bets on CNG vehicles, sees rising demand in rural and urban India

According to a senior corporate executive, Hyundai Motor India Ltd. is placing a large bet on the CNG fuel alternative, with sales of vehicles incorporating the technology seeing rising demand across the nation’s rural and urban markets. The Grand i10 NIOS, AURA, and EXTER are the three models that the business now sells with CNG. The CNG models’ share of domestic sales increased from 9.1% in FY22 to 11.4% in FY24. CNG models now account for 12.8% of the company’s domestic sales as of the April–October quarter of this fiscal year. During this time, the total number of vehicles sold in the domestic market, regardless of fuel type, was 3.54 lakh.

“At present, India already has more than 7,000 CNG stations and aim is to have approximately 17,500 CNG stations by 2030 which will further fuel the CNG demand,” HMIL Whole-time Director and COO Tarun Garg said on the reasons behind the company’s bullishness on CNG models. With a view to increase CNG vehicle sales, HMIL introduced the ‘Hy-CNG Duo’ — with a dual-cylinder system offering ample boot space and higher fuel efficiency — in its EXTER and Grand i10 NIOS models. “The introduction of Hy-CNG Duo is aimed to meet customer demands of providing ample space with high mileage and safety. This has helped us achieve the highest ever CNG penetration of 14.9 per cent in October 2024.

Additionally, the ‘Hy-CNG Duo’ has an integrated ECU for smoother and quicker switching between CNG and gasoline fuels. In October of this year, HMIL sold 8,261 CNG models domestically. The Grandi10 NIOS, a compact automobile, had a 17.4% CNG penetration rate, the mini SUV EXTER had a 39.7% CNG penetration rate, and the compact sedan AURA had a 90.6% CNG penetration rate. Additionally, according to HMIL, the adoption of CNG models increased from 8.8% in FY22 to 10.7% in FY24 in urban markets and from 7.1% in FY22 to 12.0% in rural markets.

Additionally, the ‘Hy-CNG Duo’ has an integrated ECU for smoother and quicker switching between CNG and gasoline fuels. In October of this year, HMIL sold 8,261 CNG models domestically. The Grandi10 NIOS, a compact automobile, had a 17.4% CNG penetration rate, the mini SUV EXTER had a 39.7% CNG penetration rate, and the compact sedan AURA had a 90.6% CNG penetration rate. Additionally, according to HMIL, the adoption of CNG models increased from 8.8% in FY22 to 10.7% in FY24 in urban markets and from 7.1% in FY22 to 12.0% in rural markets.