The Maruti Suzuki CBG programme has cleared its first funding hurdle.
Maruti Suzuki India has approved an investment of ₹561 crore in the first phase of four compressed biogas (CBG) manufacturing projects as part of its clean fuel strategy. The company’s board approved the projects and said it will consider expanding CBG manufacturing based on the experience gained from the first phase.
What the Maruti Suzuki CBG Projects Involve
The projects will be executed in phases using the results of a pilot study conducted by Suzuki Motor Corporation in Gujarat. Compressed biogas, produced from agricultural residue, municipal waste and other organic waste, is positioned as a cleaner alternative to compressed natural gas (CNG) and supports the company’s multi-fuel strategy alongside petrol, CNG and electric vehicles.
The board approved the four projects on 31 July 2026 with a first-phase budget of INR 5,610 million. The company said it would consider expanding CBG manufacturing based on the experience gained from this initial set, making the phase a deliberate test of process and technology rather than a full commitment to scale.
Why Compressed Biogas Fits the Multi-Fuel Strategy
Compressed biogas is chemically close enough to CNG to run in existing S-CNG vehicles and to move through comparable distribution infrastructure. That matters for a manufacturer that has built the largest CNG portfolio in the Indian market: a domestic CBG supply reduces exposure to imported natural gas without requiring customers to change vehicles.
It also sits alongside, rather than against, the company’s other powertrain bets. Petrol, CNG, hybrid and electric each address different segments and duty cycles, and CBG extends the gaseous-fuel option using feedstock India already produces in volume.
The Quarter Behind the Decision
The investment comes as the company reported quarterly revenue of ₹49,959 crore, up 36% year-on-year, while net profit declined 11% to ₹3,352 crore due to higher raw material costs and supply chain challenges. Vehicle sales increased 29.3% to 682,700 units during the quarter.
Underneath those headline numbers, domestic small car sales rose 34.1% and SUV sales 44.6%, while exports grew 28.6%. Domestic market share increased 2.3 percentage points to 41.2%, helped by the commissioning of the company’s second plant at Kharkhoda. Network inventory at the end of the quarter stood at roughly 13 days.
What to Watch Next
The scale-up decision is the one worth tracking. A ₹561 crore first phase is small against the company’s overall capital spending, but the board has explicitly tied any expansion to how these four plants perform. For India’s wider manufacturing base, that decision would determine whether CBG becomes a genuine supply chain, with digesters, compressors and dispensing equipment ordered at volume, or stays a contained pilot.