CNG car sales may be hit with the hike in the price

The proposed increase for the price of CNG version cars may see a fall of sale by nearly 20% it is estimated. The move will force ahead the autorickshaws and bus. However, the demand for CNG may prosper in the coming years, the observers foresee. The reason cited for the increase in the price was the fitment and the running cost of CNG. This may have a direct impact on the sale of CNG variants of Aveo [images], Logan [images], Accent, Santro [images], Corolla Altis [images] and Innova [images]. These are the part of expansion spree from the respective companies.

In the car market this CNG version comprises 5-7% due to its insufficient infrastructure available in India. This is why GM was forced to constraint its Aveo to Ahmedaband, Delhi and Mumbai. The cost of CNG per kg is Rs21.9 in Delhi and the increase of 20% would take it to Rs26.28/kg which is still cheaper than petrol(Rs47.93/lit) or diesel(Rs38.10/lit). an official from Society of Indian Automobile Manufacturers(SIMA) the rise in the CNG mode will pave way for more autorickshaws and buses. The trend will see the reverse only on the slump in the operational cost of CNG. It all depends on the purchase power of the customer, he added.

There are 680000 CNG cars and autos, 12000 buses and 700 CNG trucks are plying in the Indian roads. In all means, the Chairman of Maruti Suzuki is hopeful that there is a future for CNG. This view is corroborated by the Vice-President of GM India.

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