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EquityWireHigh Fuel Prices: Maruti Suzuki presses pedal on CNG cars as rising costs weigh on sales
High Fuel Prices

Maruti Suzuki presses pedal on CNG cars as rising costs weigh on sales

This story was originally published at 17:37 IST on 1 August 2026
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Informist, Saturday, Aug. 1, 2026

 

Please click here to read all liners published on this story
--Maruti Suzuki: Top four car models sold in July across brands belong to co
--CONTEXT: Comments by Maruti Suzuki mgmt in July auto sales call with media
--Maruti Suzuki: Have a network stock of 16 days currently
--Maruti Suzuki: Jul exports dn due to logistical issue, should be ok in Aug
--Maruti Suzuki: Countering rising pdt prices through CNG car sales
--Maruti Suzuki: Ramping up of new capacities expected in 3-4 months
--Maruti Suzuki: Trying our best to offer more CNG car variants to customers
--Maruti Suzuki: Rising car prices impacting sales of entry-level cars

 

MUMBAI – Maruti Suzuki India Ltd. is pushing sales of its cars running on compressed natural gas as rising fuel and other commodity prices continue to weigh on sales, especially for entry-level models, the company said Saturday. "(Rising) fuel prices, yes, it impacts (sales) very much...we have found a way out to insulate from the crude oil price fluctuation. The mantra is CNG; we are trying our level best to offer more and more CNG vehicles," Partho Banerjee, the senior executive officer of marketing and sales at Maruti Suzuki, told reporters in a virtual press conference.

 

The company has 16 car models running on CNG currently. In July, the company sold a record high 83,000 CNG cars. Sales of Maruti Suzuki's CNG cars grew 50% year-on-year in May, June, and July.  

 

Customers interested in entry-level cars usually seek powertrains which provide them the lowest total cost of ownership – a behaviour challenged by the rising prices of fuel and commodities. Having waited longer than its peers to do so, Maruti Suzuki finally hiked prices of its cars in June, and again starting Saturday. "We have got huge back orders for CNG variants and our supply chain team, production team is working 24/7 to see how we can meet customer demand," Banerjee said.

 

The Swift maker has stressed that demand for cars has not been the problem, supply has. Maruti Suzuki's board fast-tracked capacity addition plans to cater to this rising demand as the company has been unable to fully meet order bookings. Capacity addition is underway at its plants in Haryana and Gujarat, and the company expects the ramp-up to be completed in three to four months. Maruti Suzuki currently has a network stock of around 16 days. 

 

Maruti Suzuki's domestic wholesale sales hit a record high of 200,123 units, up a staggering 42% on year. Its exports fell to the lowest in seven months to 30,056 units, down 5% on year. Maruti Suzuki's exports contracted on account of logistical issues caused by the ongoing war in West Asia. Banerjee expects these issues to be resolved in August. 

 

The top four car models sold across the passenger vehicle industry in July belong to Maruti Suzuki, Banerjee said. Its sedan Dzire remained the best-selling model in July, with sales of 23,791 units.

 

For the June quarter, Maruti Suzuki reported a net profit of INR 33.52 billion on revenues of INR 524.56 billion. Friday, its shares closed 0.3% higher at INR 14,234 apiece on the National Stock Exchange.  End

 

Reported by Anand JC and Adhithya Aji

Edited by Himanshi Gupta

 

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