In a historic shift in India’s auto market, CNG-powered cars have outsold diesel vehicles for the first time in fiscal year 2025, signalling a dramatic change in consumer preferences driven by high fuel prices and a growing line-up of eco-friendly alternatives.
According to Vahan registration data, 7.88 lakh CNG vehicles were sold between April 2024 and March 2025, edging out diesel car sales, which stood at 7.36 lakh units. This marks a pivotal moment in India’s automotive landscape, with CNG vehicle sales growing nearly 35% year-on-year.
One of the biggest factors behind this change is the steady surge in fuel prices. While petrol and diesel are now averaging around ₹95 per litre in many cities, CNG remains significantly cheaper, costing just ₹75–₹80 per kg. This makes the per-kilometre running cost of CNG cars almost 50% lower than petrol or diesel vehicles – an attractive value proposition for budget-conscious Indian consumers.
The expanding CNG infrastructure has also played a vital role. As of FY25, India has over 7,500 CNG filling stations, with the government planning to nearly triple that number to 18,000 by 2030. This growth has made CNG cars more practical beyond metro cities, enabling users in Tier-2 and Tier-3 towns to consider cleaner, cost-effective fuel options.
Car manufacturers are rapidly responding to this trend. Maruti Suzuki continues to lead the pack, with one in three of its cars now running on CNG. Meanwhile, Tata Motors, Hyundai, Honda, Renault, and even newcomers like Citroën and Nissan have joined the race by introducing factory-fitted CNG variants in popular models such as Altroz, Amaze, Kwid, and Magnite. Kia is also preparing to launch a CNG version of the Carens MPV.
Interestingly, the shift is not limited to small hatchbacks. Automakers are now integrating twin-cylinder CNG kits to reduce boot space compromise, and exploring factory-fitted options in compact SUVs and MPVs—categories that previously relied heavily on diesel engines.
This shift also reflects a broader move toward cleaner mobility. As environmental concerns grow and electric vehicle adoption remains in its early stages, CNG offers a practical mid-way solution: cleaner than diesel and petrol, yet more affordable and scalable than EVs for now.
However, challenges remain. Long refueling queues and reduced boot space still affect user experience. Moreover, the number of CNG stations, while growing, is still insufficient in remote regions. Despite these limitations, the cost advantage and environmental appeal continue to drive momentum in CNG’s favor.
With cities like Delhi and Ahmedabad already seeing a sharp drop in diesel demand, and CNG gaining traction even in government transport fleets, India appears to be firmly on the road to a CNG-powered future. Whether this surge will continue or slow down once EV infrastructure scales up remains to be seen—but for now, CNG has taken the pole position in India’s automotive race.
