Rising fuel prices boost demand for Maruti e Vitara and CNG cars

Bookings for the fully electric Maruti eVitara and Maruti Suzuki’s CNG models have increased sharply following recent hikes in petrol and diesel prices. Partho Banerjee, Senior Executive Officer for Marketing & Sales at Maruti Suzuki India, shared these figures during a recent media briefing.

Key Highlights

• Maruti eVitara bookings nearly doubled in May 2026 after fuel price hikes
• CNG model demand rose as petrol and diesel prices increased by Rs 8 per litre in 11 days
• Maruti e Vitara production limited to 2,000 units, with most for export markets
• Tata Motors reported 30 percent of May bookings were electric vehicles
• Tata Motors aims to boost monthly EV production by 50 percent in coming months

Banerjee revealed that customer bookings for the eVitara nearly doubled in May 2026. Demand for Maruti’s CNG models also rose significantly. Despite a rise in compressed natural gas (CNG) prices across major Indian cities, CNG remains more affordable than petrol or diesel. Over the past 11 days, petrol and diesel prices have increased by nearly Rs 8 per litre, Banerjee noted.

Increased Demand for Alternate-Fuel Vehicles

Banerjee stated, “The CNG vehicle booking, if earlier it was coming at a rate of X, after that announcement has become 1.4X.” Maruti Suzuki recorded over 4,000 bookings for the eVitara in May 2026. However, production of the Maruti EV is limited to 2,000 units due to capacity constraints. Most of these units are designated for export markets.

The company is working with factory-fit CNG kit suppliers to increase production. Customers are shifting towards alternate-fuel vehicles as the total cost of ownership for CNG vehicles is much lower than for petrol or diesel cars, Banerjee added. Maruti highlighted that CNG variants of the WagonR now account for almost 50 percent of its total car sales in India.

Other Automakers Respond to Market Trends

Tata Motors has also seen rising demand for alternate-fuel vehicles amid the ongoing Middle East crisis. Shailesh Chandra, Managing Director at Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, commented on this trend. He said, “If I just take the example of May, my demand, which I measure in terms of bookings and not inquiries, electric vehicle bookings would be nearly 30 percent of my demand.”

Chandra explained that Tata Motors maintains a flexible manufacturing capacity, which allows the company to shift production between different powertrain options. Tata Motors is also working to expand its production capacity. “Right now, we would be supplying about 9,000 to 10,000 a month. I believe that in the next three to four months, we’ll try to see if we can enhance our production by 50 percent or so,” Chandra said. The company faces supplier constraints and is investing in some vendors to boost output.

Recent Developments and Industry Updates

Maruti Suzuki confirmed it will showcase India’s first flex-fuel car on June 4. In May 2026, Tata Motors crossed 10,000 electric vehicle sales for the first time. The BYD Atto 2 DM-i PHEV and the Maruti Wagon R flex-fuel prototype were shown for representation purposes.

Also Read: Maruti Suzuki to unveil India’s first flex-fuel car on June 4, 2026

CarBike 360 Says

As fuel prices continue to rise, the shift toward cost-efficient mobility is becoming more pronounced among Indian buyers. Maruti Suzuki’s strong response with CNG models and the upcoming eVitara highlights a clear transition in consumer preference. This trend is expected to accelerate further, reinforcing the demand for economical and sustainable alternatives in the evolving automotive landscape.