INDIA REPORT
Sales of CNG (Compressed Natural Gas) vehicles in India are set to scale a new peak, driven by robust double-digit expansion in 2023 demand, with lower total ownership costs decidedly tilting the scales in favor of gas-powered cars instead of those running on liquid automotive fuels.
“We are seeing excellent traction for CNG vehicles,” says Tarun Garg, Director – Sales, Services and Marketing, Hyundai Motor India. “CNG provides a very good option to customers in terms of reduced total cost of ownership. Not only is the price of CNG fuel less than petrol/diesel, the fuel efficiency, too, is relatively better and emissions are lower.”
Currently, the country has more than 4,500 operational CNG stations, compared with fewer than 1,000 in 2014. To push adoption of CNG vehicles in the personal mobility space, in 2019, the petroleum and natural gas ministry announced plans to set up more than 10,000 CNG stations over the decade. It is anticipated that the country will save approximately Rs 2 lakh crore in oil imports if personal car users switched to CNG vehicles. Read The Article
PSR Analysis: From a customer’s point of view, other than the environment-friendliness of CNG, a CNG-powered vehicle provides considerable savings compared to its petrol or diesel powered counterpart. Running and maintenance costs are also significantly lower compared to gasoline or diesel-powered vehicles, since CNG fuel gives better fuel economy.
A few challenges remain though. Refueling takes longer because there are fewer CNG stations, and highway driving requires additional planning to take a route with a CNG station. But vehicle buyers, who have more day-to-day usage are choosing the CNG fuel option.
However, to tackle this issue, the government plans to set up 3,500 CNG stations in two years.
“As compared to 2014, when there were about 900 CNG stations, currently the number of CNG stations now exceeds 4500, and will be ramped up to 8,000 in the next two years,” according to Hardeep Puri, Minister of Petroleum and Natural Gas & Housing and Urban Affairs
Considering the high promotion from OEMs, government’s support and customer’s increasing inclination towards CNG vehicles, we believe, for the next few years, CNG vehicles will drive the show of clean mobility in India. And once OEMs reduce battery pack costs, and expand vehicle range, the Indian automotive market will be propelled by a multiple drivetrain solution. PSR
Aditya Kondejkar is Research Analyst – South Asia Operations, for Power Systems Research
