The largest car making company in India, Maruti Suzuki India (MSI) has plans to sell CNG units of around 4-6 lakh in the current financial year. According to the senior official of the company, the sale also depends upon the situation of the supply chain of essential components. In the fiscal year 2021-2022, the company sold around 2.3 lakh CNG units and currently it is selling nine of its total 15 models with CNG power and is also planning to dive into more models with this technology in the near days.
Shashank Srivastava, who is the Senior executive director of MSI’s sales and marketing said that the sale of the models is dependent on the availability of essential components that are required. The company is currently looking at any digits around 4 lakh and 6 lakh units in this financial year. He also shared that there is a possibility for the share of CNG cars of the total share is expected to increase in the coming years as the company plans to introduce new and more models with the alternative of fuel energy. There has been a lot of interest among the consumers of cars for CNG automobiles due to the continuous increase in fuel prices and low running costs, resulting in the growth of CNG car sales.
The senior executive director of MSI’s sales and marketing, Shashank Srivastav said that the sale of the models is dependent on the availability of essential components.
The company’s sales during the past years for units were 74,000 in 2016-17; 1 lakh in 2018-19; 1.05 lakh in 2019-20 and around 1.62 lakh in 2020-21. One of the major players in the auto industry has mentioned in the past that the launch of CNG range automobiles is positioned in a way that acclaims the vision of the government to reduce oil imports and utilise natural gas in India. This will also help to develop the share of natural gas from 6.2 per cent to 15 per cent by the year 2030. The government is also working toward the increase in the CNG fuel pumps in India.
Srivastava also noted the aspect of the current fiscal year that the expectation for growth in the industry is around 15 per cent right now. The risk factors that might affect the industry growth are the semiconductor shortage or the disruptions in the supply chain due to the COVID situation, which could affect the overall result of the current year. Specifically mentioning Maruti Suzuki India, he said that predicting the growth is quite difficult as the supply chain visibility needs to be there which is not possible right now. He also said the company has expectations to grow at the industry rate if better is not possible.
The risk factors that might affect the industry growth are the semiconductor shortage or disruptions in the supply chain.
In February and March, the company was around 95 per cent in production. There has been a progressive increase in the growth of the company but it is not up to the mark, and in this quarter as well, the company is not expecting to hit the target of 100 per cent. Currently, Maruti Suzuki India has a progressive capacity of production, which is around 5.5 lakh units each quarter or almost 22 lakh units annually in the manufacturing plants that are present in Gujrat and Haryana.