1 in 3 cars sold by Maruti Suzuki in Q1 was CNG; Customer acceptance rising, says management

Maruti shares closed nearly 4 percent higher at Rs 13,375 and have rallied 31 percent over the last six months.

Maruti Suzuki, India's largest four-wheeler manufacturer, isn't just betting on hybrids or SUVs. CNG cars, once seen as primarily used for commercial vehicles, have a different story to tell.

Interestingly, one in every three cars sold by the company in the domestic market was a CNG vehicle. This may not be just a one-off, as the management said, "The customer acceptance for CNG vehicles continues to increase," during the post-result earnings call on July 31.

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The SUV major also said that CNG has surpassed diesel in popularity for the first time in India. This quarter, several new regions, including Rajasthan, Karnataka, Tamil Nadu, Madhya Pradesh, Kerala, and Bihar, are showing healthy growth in CNG adoption, even if starting from a small base.

"It's not seen as a low-cost solution any longer. Very premium models have CNG," said Maruti's Rahul Bharti, Chief Investor Relations Officer. The company has increased the supply of CNG vehicles and the production capacity of Ertiga as it had a high CNG percentage.

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Additionally, the company aims to achieve the target of 300,000 exports in FY25. The company reported a growth of 11.6 percent year-on-year to 70,560 units and captured a 40 percent share of India's total passenger vehicle exports in the first quarter.

The SUV major's net profit grew 46.9 percent year-on-year to Rs 3,650 crore, beating market expectations, as cost reduction efforts, favorable commodity prices, and foreign exchange gains boosted its bottom line. Its Profit After Tax (PAT) during the same period last year stood at Rs 2,485.1 crore.

Maruti announced its results just minutes before the trading session ended, leading to a sharp increase in its stock price. Maruti shares closed nearly 4 percent higher at Rs 13,375 and have rallied 31 percent over the last six months.

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