Car companies are ready to go crazy as soon as the price of CNG decreases – cng price cut boost cars sales in india, here is the detail
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Srivastava said, “The demand for the CNG model has been strong and the price cut is going to further strengthen its demand as compared to the diesel and petrol models. The new emission norms (actual driving emissions) have increased the acquisition cost of diesel vehicles. Also, the price advantage available to diesel as a fuel compared to petrol has come down, making CNG a more attractive option.”
Indraprastha Gas has cut its CNG price by ₹6 per kg after the government last week changed the formula for fixing the price of domestic gas. This is the first price cut by the company in the last two years. From the point of view of calorific value, CNG is about 30% cheaper than petrol. The CNG variant costs Rs 80,000-90,000 more than the petrol-powered vehicles, but increasing the difference in CNG price reduces the payback period for the buyer.
Hyundai Motor India, the second largest passenger vehicle maker by sales, also expects the price cut to boost demand for CNG models. The company’s Chief Operating Officer Tarun Garg said, “The CNG price cut is expected to increase sales of our CNG model by an average of 10-15% and increase monthly average sales from 5,000-5,200 units in calendar year 2022 to 2023.” During this, it can gradually go up to 6,000 units. The sales of the CNG model from the Korean carmaker increased to 63,058 units in the calendar year 2022 from 37,584 units a year ago. Garg said that the number would have been higher had it not been for the supply-side problem.
Hyundai recently announced that it will stop offering diesel-engine options in sedans and compact cars and will only offer diesel for SUVs.
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