Fueling Change: How CNG is transforming India's passenger car landscape

According to a report by Equirus, CNG has been steadily increasing across regions over the past one year, with the East region led by Bihar witnessing a significant increase

Amid uncertainty over the ban on diesel vehicles older than 10 years and petrol cars older than 15 years in Delhi, compressed natural gas (CNG) is quietly transforming the country’s automotive sector. After surpassing diesel cars for the first time in 2024–25 (FY25), CNG continues to gain ground in the passenger vehicle segment in 2025–26 as well. In June 2025, the share of gas in new passenger car sales stood at 21 per cent, up from 18.2 per cent in June 2024.

 

According to a report by Equirus, CNG usage has steadily increased across regions over the past year, with the East — led by Bihar — seeing a sharp rise. Electric vehicle penetration stood at 4.4 per cent in June 2025, compared with 2.5 per cent in June 2024. Meanwhile, the share of petrol cars dropped from 52 per cent to 48 per cent, falling below the 50 per cent mark for the fifth consecutive month. Diesel sales remained flat at around 18.4 per cent. 

 

Here’s a look at what’s driving the shift towards CNG in the passenger car market:

 

The quiet fuel steering a market rethink

 

Clean energy push and city gas network expansion are key drivers.

 

• 738: Number of CNG stations in 2014
• 7,996: Number of stations by May 2025
• 18,336: Committed CNG stations by 2034, according to city gas distribution companies
• Uttar Pradesh, Gujarat, and Madhya Pradesh: States with the highest number of CNG outlets

 

CNG wins wallet wars despite costly start

 

Price-conscious buyers are giving CNG an edge despite higher upfront costs.

 

In terms of CNG car sales in FY25, Maruti Suzuki led with 591,730 units, followed by Tata Motors with 139,460 units, Hyundai with 79,267 units, and Toyota with 28,089 units, according to industry reports.

 

• ₹76.09 per kilogram: Current price of CNG in Delhi
• ₹87.67 per litre: Diesel price in Delhi
• ₹94.77 per litre: Petrol price in Delhi

 

 ₹75,000–1 lakh: Typical initial price difference between CNG and petrol variants of major models like the Tata Tiago, Hyundai Nios, Maruti Suzuki Swift and Ertiga, Nissan Magnite, and Tata Nexon, based on data from Spinny. The higher cost is due to the factory-fitted CNG kit. 

 

Fuel efficiency: A typical CNG car can run at about ₹2 per kilometre (km), compared with ₹4–6 per km for diesel cars, according to Indian Oil–Adani Gas data. In city driving, CNG vehicles offer 15–20 per cent better mileage than diesel, and around 30 per cent better fuel efficiency compared with petrol

 

A new fuel order is taking shape

 

CNG’s share in the fuel mix has been steadily rising over recent months, overtaking diesel. See Fuel Mix for the trend.