Maruti Suzuki Plans to Expand CNG Vehicle Capacity from January as Demand Outstrips Supply

Maruti Suzuki India plans to increase production capacity for its CNG vehicles from January 2027 as demand across hatchbacks, sedans and SUVs continues to outpace supply, leaving customers waiting longer for deliveries.

The country's largest passenger vehicle manufacturer sold nearly 87,000 CNG vehicles in October, accounting for approximately 40% of its domestic volumes.

However, the company said its existing CNG production capacity remains constrained, limiting its ability to meet customer demand.

"For CNG we have a capacity constraint. From January onwards, we are going to further increase the capacity," Partho Banerjee, Senior Executive Officer, Marketing and Sales, Maruti Suzuki India, said during the company's October sales briefing on Sunday.

Banerjee said the company's current monthly CNG vehicle production capability was around 85,000-86,000 units. While additional capacity is expected to become available from January, he did not specify the planned increase.

The capacity expansion comes as CNG has emerged as a major growth driver for Maruti. According to the company's Q2 FY27 earnings commentary, CNG sales increased approximately 44% year-on-year to nearly 4.5 lakh units during the first half of FY27.

Maruti has set a target of selling more than 9 lakh CNG vehicles in FY27, compared with approximately 7.46 lakh units in FY26.

The company's CNG portfolio spans entry-level hatchbacks, premium hatchbacks, sedans, MPVs and SUVs. Banerjee said demand remained strong across models including the WagonR, Swift, Baleno, Brezza and Victoris.

He also pointed to a change in buyer preferences, with CNG increasingly attracting customers who previously considered diesel vehicles.

"Today, CNG is no more a value for money product. It is an aspirational product," Banerjee said, adding that the company was seeing customers shift from diesel to CNG variants.

Management believes rising conventional fuel prices are further supporting demand for CNG vehicles, which offer lower running costs for customers with high vehicle usage.

Maruti has also expanded its CNG offerings beyond conventional manual-transmission models. In September, it introduced automatic CNG variants of the Swift, Dzire and Baleno, aimed at customers seeking lower operating costs without compromising on driving convenience.

The company has also introduced underbody CNG tank packaging on SUVs such as the Brezza and Victoris, improving luggage-space availability compared with conventional boot-mounted CNG arrangements.

Low Inventory Despite Record Production

The CNG supply constraints come amid strong demand across Maruti Suzuki's wider passenger vehicle portfolio.

According to the company's October sales announcement, total dispatches increased 25% year-on-year to a record 2,76,120 units. Domestic sales, including light commercial vehicles but excluding supplies to other automakers, rose approximately 20% to 2,16,789 units.

Management said October retail deliveries reached approximately 2.44 lakh units, exceeding domestic wholesale dispatches. Despite the strong deliveries, the company ended the month with around 2.45 lakh pending bookings and dealer inventory of just 12 days.

Banerjee said the low inventory was a concern ahead of the festive period, particularly as the company continued to face production limitations.

"Honestly, we are not happy with the network stock. We would have loved to have a network stock of at least one month before the festival time," he said.

Maruti's overall vehicle production reached approximately 2.6 lakh units in October, up 35% year-on-year, supported by additional manufacturing capacity and operational improvements.

Rahul Bharti, Senior Executive Officer, Corporate Affairs, said average daily production increased to approximately 10,100 vehicles in October from 9,100 in Q1 FY27 and 9,600 in Q2.

However, management cautioned that November production and dispatches, including those of CNG vehicles, could be lower because of fewer working days due to Diwali and other holidays.

Banerjee said any decline in CNG dispatches during November should not be interpreted as weakening customer demand.

Maruti expects additional production capacity from January to help improve vehicle availability and reduce waiting periods.

The company remains confident of recording double-digit sales growth during FY27, supported by strong demand across small cars, SUVs and alternative-fuel vehicles.