Maruti to launch cars with factory fitted CNG kits

Maruti India, country's largest car-maker today said that it may roll-out cars with factory-fitted CNG kits in the models which will be produced in next fiscal year. Company's RD people are working on developing a CNG vehicle which will have factory fitted kits and if the fuel will be available across the country, the company will go ahead with this plan, said Maruti Suzuki Chairman R C Bhargava.

Mr R C Bhargava, added that company is expecting to launch factory fitted CNG cars during year 2011. He also added that the company is aiming to launch one or two cars of this type by next year. He further said that the company is concentrating on small car segment and as small car customers are much more price sensitive so company wants to make the car affordable to middle and lower middle-class families.

Starting from today the company is receiving gas at its manufacturing plant from Gas Authority of India Ltd (GAIL). According to this agreement GAIL will supply 0.33 MMSCMD of R-LNG at the rate of USD 5.8 per mmBtu under a 10-year contract. The production cost of Maruti cars will come down by 0.4 per cent per vehicle as the cost of power generation by gas is half than that from diesel, Mr Bhargava said.

Earlier we were producing at higher cost by absorbing the higher production cost of power generation by diesel. The gas supplied by GAIL will be mainly be used for paint shop and power plant, said Mr Bhargava.