Automakers decrease production of CNG vehicles as natural gas prices rise

CNG automakers have reduced their production targets to 500,000-550,000 vehicles for FY23. At the beginning of the current financial year, this target was 700,000-750,000

Indian automakers have been forced to cut the production of CNG-powered vehicles due to rising costs of natural gas. The automakers expect the rates to go up further in the upcoming round of revision, a report in Economic Times (ET) said.

The industry has reduced its production target to 500,000-550,000 vehicles for FY23. At the beginning of the current financial year, this target was 700,000-750,000. In FY22,  a total of 261,000 CNG vehicles were sold in India. 

The CNG prices are revised twice a year, once in April and again in October. Earlier in the year, when the petrol and diesel