Maharashtra Records Highest CNG Sales In The Country

As per the latest Vahan portal data (as of March 11, 2025), Maharashtra leads the nation in CNG vehicle sales for FY2025, which concludes in a few weeks. The state has recorded 2,46,792 CNG vehicle registrations, representing 20 per cent of the total 1.2 million CNG vehicles sold across India during this fiscal year. This increase in CNG vehicles comes despite the state announcing plans a few weeks back to increase motor vehicle tax on personal CNG and LPG vehicles from 7 per cent to 9 per cent starting April 1, 2025. This tax adjustment is expected to generate an additional revenue of ₹150 crore for the state government.

Maharashtra not only leads in overall CNG vehicle sales but also dominates specific segments. The state accounts for 22 per cent of CNG passenger vehicle sales (1,66,122 units) and 19 per cent of CNG two-wheeler sales (9,496 units). In the three-wheeler and commercial vehicle categories, Maharashtra ranks second behind Gujarat, with 55,498 units (17 per cent share) and 15,531 units (17 per cent share), respectively.

Nation-wide sales show that passenger vehicles constitute the largest portion of the CNG market at 61 per cent (7,37,598 units), followed by three-wheelers at 27 per cent (3,23,360 units), and commercial vehicles at 7.54 per cent (90,897 units). Bajaj Auto's Freedom 125, the only CNG-powered two-wheeler available in India, has sold 49,218 units, representing 4 per cent of total CNG sales.

Market analysts suggest the proposed tax increase might temporarily affect CNG vehicle demand in Maharashtra. However, given the significant price advantage of CNG (₹77 per kg in Mumbai) compared to petrol (₹103.49 per litre) and diesel (₹90.01 per litre), consumer interest is expected to recover after a brief adjustment period. The tax change could also potentially drive some prospective buyers toward electric vehicles, particularly in the entry-level passenger vehicle and two-wheeler segments.