Maruti Suzuki India plans to increase its CNG vehicle production capacity from January 2027 as demand across hatchbacks, sedans and SUVs continues to exceed supply, resulting in longer customer waiting periods.

The company's CNG vehicles sales in October accounted for approximately 40% of its domestic volumes. However, existing production capacity remains constrained.

"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 October 1st.

Banerjee said the company's monthly CNG production capability was around 85,000-86,000 units. Additional capacity is expected from January, although the planned increase has not been specified.

The expansion comes as CNG sales increased approximately 44% year-on-year during the first half of FY27, according to the company's Q2 FY27 earnings commentary. Maruti has set a target of selling more than 900,000 CNG vehicles in FY27, compared with approximately 746,000 units in FY26.

The company's CNG portfolio covers entry-level and premium hatchbacks, sedans, MPVs and SUVs. Banerjee said demand remained strong for models including the WagonR, Swift, Baleno, Brezza and Victoris. He also noted a shift in buyer preferences, with CNG 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 customers were shifting from diesel to CNG variants.

Management believes rising conventional fuel prices are supporting CNG demand, particularly among customers with high vehicle usage, owing to lower running costs.

Maruti has expanded its CNG range beyond conventional manual-transmission models. In September, it introduced automatic CNG variants of the Swift, Dzire and Baleno for customers seeking lower operating costs alongside driving convenience. The company has also introduced underbody CNG tank packaging on SUVs such as the Brezza and Victoris, providing more luggage space than conventional boot-mounted arrangements.

Low inventory despite record production

CNG supply constraints come amid 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 level, while domestic sales, including light commercial vehicles but excluding supplies to other automakers, rose approximately 20%.

Management said October retail deliveries exceeded domestic wholesale dispatches. The company ended the month with a substantial number of pending bookings and dealer inventory of just 12 days.

Banerjee said low inventory was a concern ahead of the festive period amid continuing production constraints.

"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 increased 35% year-on-year in October, supported by additional manufacturing capacity and operational improvements. Rahul Bharti, Senior Executive Officer, Corporate Affairs, said average daily production also increased in October compared with Q1 FY27 and Q2.

However, management cautioned that November production and dispatches, including CNG vehicles, could decline because of fewer working days due to Diwali and other holidays. Banerjee said any reduction in CNG dispatches during November should not be interpreted as a decline in customer demand.

Maruti expects the additional production capacity from January to improve vehicle availability and reduce waiting periods. The company remains confident of achieving double-digit sales growth in FY27, supported by demand across small cars, SUVs and alternative-fuel vehicles.