Hyundai Motor India Share Price Dips 3.72%; Reports CNG Vehicles Drive Growth with 12.8% Sales Share in FY25

Hyundai Motor India Ltd (HMIL) witnessed a surge in demand for its CNG-equipped vehicles, which accounted for 12.8% of the company’s domestic sales during the April-October period of FY25, totalling 3.54 lakh units. The automaker’s CNG portfolio, comprising the Grand i10 NIOS, AURA, and EXTER, has gained traction in both urban and rural markets. The contribution of CNG vehicles to domestic sales rose to 11.4% in FY24 from 9.1% in FY22.

The availability of CNG stations has played a pivotal role in driving this growth. India currently has over 7,000 CNG stations, with plans to expand to 17,500 stations by 2030. This infrastructure development is expected to bolster demand further. Tarun Garg, HMIL’s whole-time director and COO, highlighted the strategic importance of these expansions, emphasising Hyundai’s commitment to offering economical and efficient alternatives to customers.

Hy-CNG Duo and Market Penetration

In a bid to strengthen its foothold, Hyundai launched the “Hy-CNG Duo” system in the EXTER and Grand i10 NIOS models. This innovative system incorporates dual cylinders, providing ample boot space and improved fuel efficiency. It comes with an integrated ECU for seamless switching between petrol and CNG modes and is backed by a three-year warranty. These features have driven CNG penetration to a record 14.9% in October 2024.

Hyundai recorded 8,261 units in domestic CNG vehicle sales in October. Model-wise, the Grand i10 NIOS achieved 17.4% CNG penetration, EXTER reached 39.7%, and the AURA compact sedan saw an impressive 90.6%. Market penetration has improved significantly, with urban CNG adoption increasing from 8.8% in FY22 to 12.3% in FY24, while rural penetration rose from 7.1% to 14.6% during the same period. Pune, New Delhi, and Ahmedabad emerged as top-performing cities for CNG vehicle sales, while Maharashtra, Gujarat, and Uttar Pradesh led the state rankings.

Strategic Alignment with Industry Trends

HMIL’s focus on CNG models aligns with strategies adopted by competitors such as Maruti Suzuki India and Tata Motors. Maruti Suzuki has set a target of 6 lakh CNG vehicle sales for FY25, following 4.89 lakh unit sales in FY24. Tata Motors reported 21% CNG sales in H1 FY25, up from 16% in FY24. With CNG infrastructure growing and innovative offerings like the Hy-CNG Duo, Hyundai is well-positioned to capture a significant share in this rapidly expanding market segment.

On November 18, 2024, Hyundai Motor India share price opened at ₹1,751.90, down from its previous close of ₹1,765.75. At 10:07 AM, the share price of Hyundai Motor India was trading at ₹1,700.00, down by 3.72%.

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