Maruti Suzuki approves ₹561 crore CBG push as sales rise but profit slips

Maruti Suzuki has approved a first-phase ₹561 crore investment across four compressed biogas projects. April–June vehicle sales rose 29.3% year on year and domestic share reached 41.2%, while higher raw-material costs contributed to an 11% decline in net profit.

— Source publishedFri, 31 Jul, 2026, 19:23 IST·First seen Fri, 31 Jul, 2026, 19:37 IST·Source ET Small Business

What happened

Maruti Suzuki India · Maruti Suzuki approved four CBG projects with Rs 561 crore first-phase investment, extending its clean-fuel strategy. Q1 sales rose 29.3%

Key facts

  • Rs 561 crore first-phase investment
  • 4 CBG manufacturing projects
  • 682,700 vehicles sold in April-June
  • 29.3% year-on-year total sales growth
  • 34.1% small-car domestic sales growth
  • 44.6% SUV sales growth
  • 28.6% export growth
  • 41.2% domestic market share
  • 2.3 percentage-point market-share increase
  • Rs 49,959 crore net sales
  • 36% year-on-year net-sales growth
  • Rs 3,352 crore net profit
  • 11% year-on-year net-profit decline
  • 13 days dealer inventory

Why this matters

The four-project CBG rollout creates an opening for Maruti Suzuki to secure feedstock, infrastructure and energy partnerships that support a lower-carbon mobility ecosystem.

What to watch

  • Commissioning timelines and expected annual CBG output from each project.
  • Long-term feedstock supply agreements and CBG offtake or distribution partnerships.
  • Quarterly gross-margin trend, commodity-cost commentary and pricing actions.
  • CNG model sales growth versus total domestic sales and changes in domestic market share.
  • Any expansion beyond the ₹561 crore first phase or revisions to alternative-fuel capital allocation.
  • Government policy changes affecting CBG subsidies, carbon credits, waste-feedstock access or gas pricing.
  • Finalize project locations, feedstock sourcing and execution partners for the four CBG facilities.
  • Link CBG output to CNG vehicle, fleet, dealer and gas-distribution partnerships.
  • Evaluate follow-on CBG capacity if first-phase project economics and fuel offtake are validated.
  • Use selective price increases, localization and model-mix improvements to offset raw-material cost pressure.
  • Promote CNG and alternative-fuel models as a lower-operating-cost option alongside hybrid and EV offerings.

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