Vahan Retail Sales Report: CNG Goods Carrier Segment Shows Strong Growth

Key Highlights:

• The shift towards electric vehicles has affected the demand for CNG goods carriers. 
• Tata Motors strengthened its position, capturing 42% of the CNG goods carrier market in H1 2024.
• SML Isuzu experienced an 11% decline year-over-year (YoY). 
• Ashok Leyland stood out with a 61% YoY increase, selling 1670 units in H1 2024. 
• Despite some brands showing growth, the overall CNG goods carrier market saw a reduction from 10% to 8% in its share of the CNG vehicle market compared to last year.

The recently issued Vahan retail sales report includes sales numbers for CNG goods carriers, which comprise light commercial vehicles (LCVs) and medium and heavy commercial vehicles (M&HCVs), for H1 2024.

According to this sales report, the move to electric vehicles appears to have affected demand, particularly for light goods carriers.

Last year, CNG goods carriers in the LCV and M&HCV categories accounted for 10% of the total CNG vehicle market. However, it has decreased to 8% for the current year. 

The segment of CNG goods carriers recorded the slowest growth, with a single digit of 8% YoY, selling 43,889 units in H1 2024 versus 40,630 units in H1 2023.

In the CNG goods carrier industry, just three OEMs, Tata Motors, Mahindra & Mahindra, and Ashok Leyland, experienced retail sales increase in the first half of 2024. 

Tata Motors maintained its leadership in the retail sales market for CNG goods carriers in H1 2024, with a wide variety of CNG-powered commercial vehicles ranging from the Ace to the Ultra series.

OEM- Wise CNG Goods Carrier Sales Report for H1 2024

Tata Motors' market share has increased by 4%, from 38% in H1 2023 to 42% in H1 2024. The company saw a 20% increase in retail sales after selling 18,637 units in H1 2024, compared to 15,552 units in H1 2023.

SML Isuzu sold 266 units in the first half of 2024, compared to 299 in the first half of 2023, representing an 11% YoY sales reduction.

Maruti Suzuki sold 14,175 units in January-June 2024, a 4% decrease from 14,738 units in the same six-month period last year.

Mahindra's CNG goods carriers witnessed a 4% sales increase, selling 6885 units in H1 2024 versus 6627 units in H1 2023.

Ashok Leyland achieved a spectacular 61 per cent YoY sales gain by selling 1670 units of CNG-powered goods carriers in the first half of 2024, compared to 1040 units in the same period the previous year.

VECV (Volvo and Eicher Commercial Vehicle) sold 2229 units in H1 2024, compared to 2274 units in H1 2023, representing a 2% YoY reduction in retail sales.

Aside from these, CNG goods carrier OEMs reported sales of only 27 units in the first half of 2024, compared to 100 units in the first half of 2023, showing a 73 per cent YoY retail sales loss. 

As electric vehicles become more popular, manufacturers of CNG goods carriers will need to find out these changes in consumer preferences and regulations.

Also Read: CNG Vehicle Sales Surge in the First Half of 2024

CMV360 Says

The latest sales report for CNG goods carriers in H1 2024 shows a slight decline in market share, down to 8% from 10% last year. CNG is gaining traction as a practical fuel choice for business travel across Indian cities, supported by a growing network of CNG stations. 

Tata Motors leads with 42% of the market, up 4% from last year. While some brands saw growth, overall sales growth was modest, reflecting a shift in commercial vehicle preferences amid increasing focus on electric vehicles.