CNG vehicle registrations across India showed remarkable growth in October 2024, with Pan-India numbers rising by 69% month-on-month (m/m) and 45% year-on-year (y/y), according to a report by Citi. This uptick reflects increased consumer interest in CNG vehicles, likely driven by cost efficiency and environmental concerns, creating a favorable environment for companies like Indraprastha Gas Limited (IGL) and Mahanagar Gas Limited (MGL).
IGL and MGL’s Regional Growth
In the key geographic areas of IGL and MGL, CNG vehicle registrations saw impressive gains. Registrations in IGL’s area rose by 40% m/m and 55% y/y, while MGL’s area saw a 60% m/m increase and a 47% y/y rise. This regional growth is a positive indicator for both companies, highlighting robust demand and paving the way for potential revenue growth.
Projected Volume Growth for FY25
Citi’s report also projects that IGL and MGL’s CNG vehicle base (excluding two-wheelers) could expand by approximately 9-10% in FY25. This anticipated increase in their CNG vehicle base is expected to support sustained volume growth for both companies, making them well-positioned to capitalize on the expanding CNG market in India.
With the ongoing trend toward CNG vehicles, both IGL and MGL are likely to experience strong growth, further solidifying their roles in India’s transition to cleaner and more cost-effective fuel options.
