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Growth of CNG vehicles

in India

Suresh Zanwar
Increasing CNG Fuel Penetration
CNG PV penetration in 2021
CNG penetration in passenger vehicle
segment is increasing in India more than EV 18316
CNG
18.59%
penetration Vehicle
petrol 1.94%
In last two years CNG share increased from diesel
1913
18.6 % to 39 %
CNG vehicles growth is more than 55% 78307
annually 79.47%

Maruti Suzuki - FY24 target Sales target is CNG PV penetration in 2023


11949
3.66%
4.75 lakhs, and have long-term target of
increasing CNG share about 50% in their
portfolio
127547
Growth in CNG due to large network of CNG 39.10%
station, easy & nearest availability of CNG
186695
across India and convenience of short
57.23%
fueling time Source – Vahan Seva
Why CNG vehicles are growing

• CNG vehicles available in all segments of 3W, 4W :PV / CV, LCV,


M&HCV
• CNG station availability - Large numbers stations on Highways &
cities, at shorter distance and 5 X growth by 2028
• Price – Ownership life cost is lesser than Petrol / Diesel & even with
EV considering battery replacement cost, Higher mileage by 50 -70
%. CNG Prices are decreasing day by day as market getting matured
• Eco friendly – Less pollutant than Petrol / Diesel
• Future ready – Hydrogen blending , Bio-CNG
• Range of vehicle – Suitable for each segment
• Govt push for CNG : Lower tax rate on CNG, promotion for lower
emission
CNG Market budge
CNG Market budge
• CNG: India's fastest growing segment
• CNG share in PV sales up 3X in 3 years
• CNG car sales scale new high in India, jump
55 % in FY2023
• Tata Motors launches 5 new CNG trucks
• Ashok Leyland expands offering in CNG,
launches truck in 18.5 tn segment
• Eicher Truck & Buses Expands CNG Range
• Tata Motors targets to grow CNG share to
14% in FY24
• Tata Motors sees EVs and CNG to
contribute 50-60% of PV
Average CNG Price Comaprison with the other fuel options
Average equivalent CNG price Equivalent
across India is lesser by 40% Petrol
Diesel CNG Price
of Petrol price and 32% of State Price
Price /litre /litre
Diesel /litre
(price/kg)
(Avg .price) (Avg .price) (Avg price)
Govt of India has capped CNG
price for domestic production – KARNATAKA ₹ 100.34 ₹ 86.35 58.19 (81.50)
assuring stability of CNG price
compared to Petrol / Diesel. TAMILNADU ₹ 101.77 ₹ 93.35 58.19 (81.50)
KERALA &
₹ 106.50 ₹ 95.42 59.61 (83.50)
50% of CNG consumed is PUDUCHERRY
produced in India TELANGANA ₹ 111.83 ₹ 97.82 64.61 (90.50)

Growing network of gas ANDHRA


₹ 109.20 ₹ 97.33 66.04 (92.50)
PRADESH
pipelines for transport of gas
will improve competitive price
Model of CNG passenger vehicles in market
Cars on sale in the market : 27 CNG model CNG vehicle sales 2023 ( Jan-Oct )
Toyota Hyryder 1568
• Maruti Suzuki provides 14 CNG models Hyundai Exter 5162
Maruti Fronx 6714
• Hyundai provides CNG option in three models -- Grand Maruti Grand vitara 11036
i10 Nios, Aura and Exter Tata Punch 17749
• The Tiago, Tigor, Punch and Altroz are four Tata cars Maruti BreeZa 24819
having a CNG option at present. Tata Tigor 9693
Hydundai Aura 34861
• Toyota Glanza, Toyota Rumion, Toyota Urban maruti Dzire 46322
Cruiser Hyryder Toyota Rumion 446
• Honda City & Honda Amaze – CNG Ready model Maruti XL6 10855
• Mahindra Kuv100 maruti ertiga 65347
Maruti S presso 1847
Maruti Celerio 3980
Expected launch of CNG in 2024: 9 model Toyota Glanza 4602
Maruti alto 4884
Tata Tiago 10407
• Maruti Suzuki - Next-Gen Dzire, Next-Gen Maruti Hyundai I 10 11118
Suzuki Swift, Solio Tata Altroz 16101
• Tata Motors - Nexon, Altroz Racer Maruti Baleno 19677
• Kia Motors - Carens CNG, Sonet CNG Maruti Swift 21152
Maruti Wagon R 78351
• Hyundai : Alcazar , i20, Creta
• Toyato - Taisor 0 20000 40000 60000 80000 100000
Model of CNG Commercial vehicles in market
Vehicle make / Model GVW Ton
All truck & bus manufacturer Tata Signa G.48T CNG 47.5 T, Range 500 + Km

model in market Tata Signa 2818 T CNG 28.0


Tata Signa 1918 CNG 18.5 T
Tata 1412g LPT Truck 13.85
Commercial vehicles / trucks Eicher Pro 3019 CNG Truck 18.5 T

up to 47.5 Ton Ashok Leyland 1922 CNG 18.5 T


Eicher Pro 2059XP CNG Truck 7.49
Tata 709g LPT Truck 7.3
Range up 500 km Eicher’s Pro 2049 CNG 5-ton
Force Traveller Delivery Van 3.87

Long Haul truck launched Ashok Leyland Dost CNG 2.55


Mahindra Bolero Maxitruck CNG Pickup 2.75
Maruti Suzuki Super Carry CNG –GVW 1.6 Ton
No DEF required Mahindra Jeeto CNG 400 1.485
Tata Ace CNG Plus 1.63
Piaggio Ape Xtra LDX 3 Wheeler 0.975
Reduce carbon footprint Bajaj Maxima C 3 Wheeler 0.986
Model of CNG tractor in market
Growth of CNG Station in SR
South India : 1071 CNG stations are in
operation / work in progress.
Across India increased from nearly 1,424 in
FY18 to 6035 in Sept’23.
The government has a goal to bump up the
number of CNG stations from 6,000 to
17,700 by 2030 across Indian and 6000 in
South India
CNG CNG station by 2028-30
State
station/WIP

KARNATAKA 371 894


ANDHRA
PRADESH 168 727 1071 CNG RO
KERALA & Network in
PUDUCHERRY 124 1213
South India
TAMIL NADU 243 2547
TELANGANA 165 619
SR REGION 1071 6000
Source - PPAC/ PNGRB
Payback of CNG PV Vs EV / Petrol
Tata Tiago XT Tata Tiago
Tata Tiago XT EV
CNG vehicle additional cost CNG XTA Petrol
over petrol vehicle is paid On-road price in Rs 7,99,000 6,60,000 5,65,000
back in just 2.34 years when Incentives
Discontinued wef
NA NA
running is 50 km/day, 01.04.2024
whereas EV payback Cost to consumer in Rs 7,99,000 6,60,000 5,65,000
compared with CNG takes Rs/kWH or Rs/Kg or
8.2 82 101
Rs/litre
6.13 years. Mileage (km/unit) 13.02 26.49 19
By payback period EV may Running cost (Rs/km) 1 3.09 5.31
call for battery replacement Breakeven distance
54,292 42,793 NA
versus petrol in km
Convenience of refueling
Breakeven distance
CNG is added advantage 1,11,962 NA NA
versus CNG in km
over EV
Pay back over petrol for
2.97 2.34 NA
No anxiety of CNG stations 50 km/day running (Yrs)
availability Pay back over CNG for 50
6.13 NA NA
km/ day running (Yrs)
Role of CNG in De-Carbonization & other emerging fuels

In Next 10
years CNG
vehicle will
capture all
segments
market
Peak demand of natural gas in India
Europe, North America (USA and
the southern part of Canada),
China, Russia, Korea and Japan are
major consumer of Natural Gas
having share of nearly 24 % in
energy mix.

India’s Natural gas share is nearly


6.3% in energy mix.

India’s natural gas peak demand


expected after 2040.

Signifies long run of natural gas in


India
Summary
Anxiety of CNG availability & convenience :
• CNG Widely available – all Highways covered with CNG ROs & small cities also
• Now CNG fueling is easy and would not take time, no queues
• CNG stations more accessible than electric charging stations
CNG Price & cost of vehicle:
• 30 – 40 % cheaper compared to gasoline or diesel
• Domestic production control price rise, CNG prices are in reducing trends compared to other
fuels
• Lower cost of ownership of CNG vehicles
OEM vehicle and repair :
• All Vehicle OEMs have developed models of CNG
• Wide network and easy repair /maintenance
• Less maintenance cost / No major replacement unlike battery
• CNG vehicles market share has grown from 18% to 39 % in personal vehicles sold in last two
years
Environment & other:
• Reduce carbon footprint
• Improving energy self –reliance with domestic gas production
Thank you

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