Maruti Suzuki Prioritises CNG Amid Slow EV Production Due to Inflation

Maruti Suzuki India Ltd has strategically shifted focus to compressed natural gas (CNG) vehicles due to surging demand, scaling back its electric vehicle (EV) production increase to later in the year amidst inflation concerns, as per The Mint report. 

Maruti Suzuki's Strategic Focus on CNG 

On June 1, 2026, Maruti Suzuki announced its decision to prioritise CNG vehicles following unprecedented booking numbers.  

The price rise of natural gas has been slower compared to petrol and diesel, making CNG an attractive option for consumers.  

The company's EV production will maintain a level of 2,000 units per month until September, when capacity will be expanded for its e-Vitara model. 

Rising CNG Market Share 

According to March-April data from the Federation of Automobile Dealers Association, the CNG market share in passenger vehicles increased to 22.6% in April 2026 from 19.8% the previous year. The retail sales data highlighted this growing interest, which has influenced Maruti's strategic decisions. 

Domestic Sales Surge 

In May 2026, Maruti reported overall domestic sales reaching a record high of 1,90,337 units, a 40% increase.  

Impressively, 40% of these were CNG models, reflecting consumer preference for more economical options amidst rising fuel prices. 

Read More: EV Sales Surge to Nearly 7% of India's Passenger Car Sales in May 2026 as Fuel Prices Rise! 

Challenges in EV Production 

Despite high demand, Maruti Suzuki's EV production faced challenges, missing its 70,000-unit target for fiscal year 2026.  

The company registered 1,400 domestic units and exported 25,000 units, significantly below expectations. This has prompted the company to reassess and delay its EV capacity expansion plans. 

Tata Motors and Mahindra's EV Success 

While Maruti Suzuki has focused on CNG, competitors like Tata Motors and Mahindra are witnessing a surge in EV sales.  

In May, EV sales reached a peak of 26,000 units, with Tata Motors selling over 10,000 EVs and Mahindra doubling its EV sales compared to the same period last year. 

Maruti Suzuki India Share Price Performance  

As of June 01, 2026, at 3:30 PM, Maruti Suzuki India share price on NSE was closed at ₹12,946.00 down by 1.38% from the previous closing price. 

Conclusion 

Maruti Suzuki's strategic focus on CNG vehicles amid slower-than-projected EV production underscores a responsive approach to market demands and inflationary pressures. The increase in CNG vehicle sales suggests consumer preferences in the current economic climate, while the company continues to adjust its production plans in response to both challenges and opportunities. 

Track the stock market in Hindi. Visit Angel One News for the latest market trends, insights, and share market news in Hindi. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.