India's largest automaker, Maruti Suzuki may launch a factory-fitted CNG vehicle by the next fiscal in the Indian market. Officials have confirmed that the R&D team is working on the feasibility of the plan but a lot will still depend on the availability of fuel across the country.

Though the company refused to divulge any product specific detail as to which will be the first one to be the CNG vehicle from Maruti Suzuki but experts believe that it will be one of the compact cars with Alto being the frontrunner.

The company has recently signed a deal with Gas Authority of India Limited (GAIL), under the terms of the agreement; GAIL will supply 0.33 MMSCMD of R-LNG at the rate of $5.8 per mmBtu under a 10-year contract. The deal is expected to make the products from Maruti Suzuki cheaper by 0.4%.

However, the company has bluntly clarified that the cut will not be passed on to the consumer in any case as the company was earlier absorbing higher production cost. Notably, Maruti Suzuki produced 1.2 million units in the 2009-10 fiscal.