Swaraj Baggonkar Moneycontrol News
The country's largest carmaker Maruti Suzuki is ramping up production of its CNG range aided by a robust pick-up in their demand during the past few weeks.
The company saw a 50 percent jump in demand, according to RC Bhargava, Chairman, Maruti Suzuki.
"We are ramping up production of CNG vehicles. We have 8 models with CNG and we have seen growth of CNG vehicles this year is 50 percent already over last year. It clearly demonstrates the consumer's preference for CNG. It is also worth noting that the consumer prefers CNG despite the long queues at the filing station," he said .
In September this year, the government announced plans of spending Rs 70,000 crore in setting up 10,000 CNG filling stations up from around 1450 at present in a decade. This has come as major shot in the arm for carmakers, who were pushing the government for increasing the number of CNG filling stations across the country.
"Government has changed its approach and priorities with regards to use of CNG for mobility. Promoting CNG is the quickest way to reduce oil imports and we have fair availability of CNG in the country," added Bhargava.
A kilogram of CNG costs Rs 49.61 in Mumbai while a litre of petrol costs Rs 86.73. Besides the cost factor, a CNG-powered car is more economical to run than a petrol-powered car. A CNG car gives a mileage of 30-40 percent more mileage than a petrol-powered car of the same model.
Realising this, Korean car brand Hyundai is launching the all-new Santro with a factory fitted CNG option in two variants. The Santro has already gone on sale.
Highlighting the poor demand in the retail market, Bhargava also said that the festive season this year would be rather subdued given the negative sentiments, high fuel prices, high interest rates and impact on insurance rate hike.
"Sales during the festive season is going to be only marginally different than the last year's festive season. We would like to keep one month inventory with the dealer. Our current inventory is 1.35 lakh," added Bhargava.
He also said that manufacturers will have to go in for inventory correction if demand does not pick up in the coming days.
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