Hyundai Is Doubling Down On CNG In Rivalry With Maruti Suzuki, Tata Motors

Hyundai Motor India Ltd. saw the contribution of its CNG models to overall sales rise to the highest in October but that still lagged rivals Maruti Suzuki India Ltd. and Tata Motors Ltd.

About 14.9% of Hyundai India’s volumes in the festive month were powered by compressed natural gas, according to the company. That compares with 28% CNG penetration for Maruti Suzuki and 21% for Tata Motors. In Fiscal 2025 so far, Hyundai India’s CNG penetration stands at 12.8. It was 11.4% in FY24 and 9.1% in FY22.

“The customer wants ‘space bhi, mileage bhi’, and we are positioned very well to address that,” Tarun Garg, chief operating officer at India’s second largest carmaker, told NDTV Profit during an interaction on Tuesday. “India has more than 7,000 CNG stations and the aim is to have 17,500 by 2030…which will further fuel CNG demand.”

Adoption of CNG cars is seen as crucial in India—at 36 cars per 1,000 people, the world’s third largest automotive market has among the lowest vehicle penetrations globally. 55-60% of customers are first-time buyers, who more often than not opt for hatchbacks and compact SUVs, where CNG is offered as an alternative to petrol.

“CNG will play a very important role here in the adoption of compact cars, until we have a frugal hybrid system or something like battery-as-a-service in place,” Puneet Gupta, director - India & Asean at S&P Global Mobility, told NDTV Profit. Gupta sees one in five cars in India to be gas-powered by the end of this decade, up from 14-15% at present.

Hyundai offers the Grand i10 Nios hatchback, the Aura sedan and the Exter sub-compact SUV with CNG powertrains, which contribute 17.4%, 39.7% and 90.6% of overall sales of those models. The company recently equipped the Exter and Grand i10 Nios with the so-called ‘Hy CNG Duo’ technology that propelled sales by 17-28% sequentially.

• The ‘Hy CNG Duo’ technology includes two small CNG cylinders placed under the boot floor, where a spare wheel would normally go. That frees up boot space and retains the entire petrol tank of the car.

• These CNG cars have a three-year warranty for the dual cylinders and integrated electronic control unit, or ECU, for faster and seamless shifts between petrol and CNG powertrains.

“This is a very frugal technology that addresses the biggest customer complaint with CNG cars—luggage space in the boot,” Gupta of S&P Global Mobility said. A typical CNG tank takes up the entire boot space, leaving little room for anything else. 

Tata Motors was the first to introduce the dual-cylinder technology in its Altroz hatchback, and Hyundai has done well to bring it to the Exter, Gupta said. It would take Maruti Suzuki some time to replicate the technology, as it already has a solution in place. “It’s easier to bring (dual CNG cylinders) into newer cars,” Gupta said. “An older model (like the WagonR) has to be re-engineered.”

To be sure, for Hyundai, the CNG overdrive isn’t an urban phenomenon. In fact, the adoption is higher in rural markets. CNG penetration in urban India increased to 10.7% in FY24 from 8.8% in FY22. In rural areas, that stood at 12.0% in FY24 and 7.1% in FY22. The top-three ‘CNG’ cities for Hyundai India are Ahmedabad, New Delhi and Pune. Gujarat, Maharashtra and Uttar Pradesh have the highest penetration, state-wise.