Maruti expects hybrid and CNG sales to match diesel's glory days

economictimes.indiatimes.com:

Maruti Suzuki is betting big on strong hybrid and compressed natural gas vehicles and expects cumulative sales of these models in the ongoing financial year to inch closer to peak volumes the company had reported in the diesel vehicle segment five years ago. Maruti Suzuki, which stopped production and sale of diesel vehicles ahead of the transition to BSVI emission norms in April 2020, had reported best-ever sales of diesel vehicles of about 480,000 units in FY18.

While diesel vehicles continue to comprise about 17.8% of passenger vehicle sales in the local market, the company said it would stay away from the segment and instead introduce more vehicles with CNG and strong hybrid powertrains for its customers. «As emission norms become tighter, the investments required to make diesel vehicles compliant will raise sharply acquisition costs.

Diesel does not make economic sense,» said Shashank Srivastava, senior executive officer (marketing and sales) at Maruti Suzuki India, adding in the near term the company will focus on ramping up production and sales of CNG vehicles in the mass market as it is a cost-effective solution. In the ongoing fiscal itself, Maruti Suzuki is looking at selling up to 450,000 CNG vehicles, up from 328,000 units sold in FY23.

The company additionally has introduced two strong hybrid vehicles in its portfolio — the Grand Vitara and the Invicto — as alternates for consumers at the more premium end of the market. Combined sales of CNG and strong hybrid vehicles at the company stood at around 111,000 units last quarter.