Maharashtra, which plans to raise motor vehicle tax by 1% on personal (non-transport) CNG vehicles from April 2025, is the No. 1 state in India for CNG vehicles. In the past 11 months and 11 days, it has clocked retails of 246,792 units and a 20% share of the 1.2 million CNG vehicles sold. It also tops CNG passenger vehicle and two-wheeler sales and ranks second for three-wheelers and commercial vehicles.
12 Mar 2025 | 728 Views | By Ajit Dalvi
The state of Maharashtra, which has announced plans to increase motor vehicle tax on personal (non-transport) CNG- and LPG-powered vehicles by 1% from the existing 7% to 9% from April 1, 2025, is currently the leading state for CNG vehicle retail sales in the current fiscal year FY2025, which is ...
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The state of Maharashtra, which has announced plans to increase motor vehicle tax on personal (non-transport) CNG- and LPG-powered vehicles by 1% from the existing 7% to 9% from April 1, 2025, is currently the leading state for CNG vehicle retail sales in the current fiscal year FY2025, which is set to close in another 19 days. The proposed hike in MV tax on CNG/LPG vehicle is expected to generate additional revenue of Rs 150 crore for Maharashtra, which is currently the No. 1 state in the country for CNG vehicle sales.
As per the latest data sourced from the Vahan portal (March 11, 2025), of the total 1.2 million CNG-powered vehicles (12,04,491 units) sold in India in the April 1, 2024 to March 11, 2025 period, Maharashtra accounts for 246,792 units or a 20% share, the highest of all the states and Union territories.
Maharashtra is followed by Gujarat (217,459 units), Uttar Pradesh (172,004 units) and Haryana (113,891 units), the only ones to have surpassed 100,000 sales in the fiscal year to date. The Top 10 States/UTs (see data table above) together account for 11,12,558 units or an overwhelming 92% of all CNG vehicle retails across India. Let’s take a closer look at each of the four key vehicle segments.
CNG VEHICLES HAVE 5% SHARE OF INDIA AUTO INC RETAILS
Of the 24.66 million vehicles retailed in India in the past 11 months and 11 days across all vehicle segments (two- and three-wheelers, passenger vehicles, commercial vehicles) and powertrains (petrol, diesel, CNG, LPG, electric, ethanol and hydrogen), the 1.2 million CNG vehicles account for a 5% share, 2% less than the 1.80 million electric vehicles (7% share) retailed in the same period. Petrol-engined vehicles (18 million units) have the largest share at 73%, followed by diesel vehicles (24,72,856 units) with 10 percent.
The data table above reveals that passenger vehicles (737,598 units) and a 61% share have the largest share of the CNG market. Three-wheelers (323,360 units) have a 27% share and commercial vehicles (90,897 units) have a 7.54% share.
Bajaj Auto, the sole two-wheeler OEM to produce and market a CNG two-wheeler – the Freedom 125 – has sold 49,218 units till date which gives this segment a 4% share of total CNG vehicle retails.
MAHARASHTRA NO. 1 IN CNG PASSENGER VEHICLE AND 2W SALES
The passenger vehicle industry is the leading contributor to CNG vehicle sales in India. Of the total 12,04,491 CNG vehicles sold in the April 1-2024 to March 11, 2025 period, 737,598 CNG-powered cars, SUVs and MPVs have been retailed, accounting for a majority share of 61 percent.
Of this, Maharashtra accounts for 166,122 PVs and a leading 22% share, with Gujarat (128,255 units / 17% share) and Uttar Pradesh (118,860 units / 16% share). The Top 10 states together account for 688,744 CNG PVs or 93% of total retails.
Maharashtra is also the No. 1 state when it comes to sale of CNG-powered two-wheelers. The state, which is home to Bajaj Auto which launched the Freedom 125, the world’s first CNG-powered motorcycle last year, accounts for 9,496 units and 19% of the total 49,218 CNG bikes delivered to customers till date. Gujarat (8,665 units) and Uttar Pradesh (5,340 units) are ranked second and third, respectively.
MAHARASHTRA RANKED SECOND IN CNG 3W AND CV RETAILS
A total of 323,360 CNG three-wheelers have been sold in the past 11 months and 11 days across India. Gujarat, with 63,430 units, is the No.1 state with a 20% share. Maharashtra (55,498 units) is ranked second and a 17% share of total retails in this segment.
Maharashtra has a similar No. 2 ranking in CNG commercial vehicle sales. Of the total 90,897 vehicles sold in the period under review, Maharashtra accounts for 15,531 units and a 17% share, 1,123 units behind Gujarat which leads with 16,654 units and an 18% share.
CNG fuel per se caters to the price-sensitive vehicle buyer. The proposed 1% hike in MV tax on personal CNG vehicles could marginally impact demand for CNG passenger vehicles and the Bajaj Freedom 125 in the short term in Maharashtra. However, albeit given the considerable price differential of CNG (Rs 77 per kg in Mumbai) to petrol (Rs 103.49 a litre in Mumbai) and diesel (Rs 90.01 a litre in Mumbai), demand should bounce back after a few months. The price hike could also drive some fence-sitting buyers of CNG vehicles to electric vehicles, particularly entry-level electric passenger vehicles and two-wheelers.
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