Home / Business and Economy / CNG Cars Soar, Bikes Stall: India's Fuel Divide
CNG Cars Soar, Bikes Stall: India's Fuel Divide
26 Jul
Summary
- CNG cars surpassed 1 million sales in FY26, dominating PV sales.
- CNG motorcycles struggle, with sales dropping significantly.
- EVs offer home charging convenience, challenging CNG bikes.
India's automotive market is witnessing a stark contrast in the adoption of Compressed Natural Gas (CNG) as a fuel. In the financial year 2026 (FY26), CNG vehicles for personal use achieved a remarkable milestone, surpassing one million sales and securing 21.7% of the total passenger vehicle market share. This surge is powered by offerings from major manufacturers like Maruti Suzuki, Tata Motors, and Hyundai.
Conversely, the path for CNG in the two-wheeler segment has been far more challenging. The Bajaj Freedom 125, launched in July 2024 as the first CNG motorcycle, experienced a significant sales drop of 76% in FY26 after initial enthusiasm. The limited 2-kg CNG cylinder capacity compromises petrol tank space, reducing its real-world range to about 100 km and necessitating frequent, inconvenient refuels.
Industry analysts point to a combination of factors hindering CNG motorcycles. While dual-cylinder technology in cars preserves cargo space, the physics on bikes is more restrictive. Furthermore, the burgeoning popularity of electric two-wheelers, offering convenient home charging, presents a strong alternative. Bajaj's own electric Chetak saw a 16% sales increase in the same period.
Despite the current struggles, some experts suggest that CNG technology in two-wheelers is not entirely doomed. They note that new powertrain launches often follow a non-linear adoption curve. While electric vehicles dominate urban markets, CNG retains a value proposition for high-mileage commuters in areas with established refueling infrastructure. The future likely involves a coexistence of internal combustion engine (ICE), CNG, and electric powertrains, each serving distinct consumer needs.
