India’s CNG and LPG Vehicle Market size were valued at 863.22 thousand units. In 2021 and the total revenue is expected to grow at 6.82% of CAGR from 2022 to 2029, reaching nearly 1463.46 thousand units.
India CNG and LPG vehicle Market Overview:At a projected CAGR of 6.82%, sales of CNG and LPG vehicles will increase from 863.22 thousand units in 2021 to 1,463.46 thousand units in 2029. Manufacturers have been forced to offer CNG and LPG vehicles all over the world due to factors like the rise in demand for low-emission commuting and government support of CNG and LPG vehicles through taxes and subsidies. Governments throughout the world are investing more money to build CNG and LPG infrastructure, and they are providing incentives to consumers, which will give OEMs the chance to grow their income and region reach. Because there is such a large demand for inexpensive and low-emission automobiles, another factor driving the demand for CNG or LPG vehicles is the pace at which additional fuel stations are being set up. From around 3900fuel stations for CNG across 236 cities in 2022, the number is expected to swell to 10,164 across 327 cities by 2026. To know about the Research Methodology:- Request Free Sample Report
Report ScopeThe India CNG and LPG vehicle Market report analyses market characteristics, volume & growth, segmentation, regional breakdowns, market shares, trends, and business plans. The report has covered both demand and supply sides of the market. Growth trends, restraints, legal aspects and competitive landscape of key players make this report unique. The Indian CNG and LPG vehicle market research report will be useful resource for manufacturers, investors, and all stakeholders in the industry and will enable their decision-making process. India CNG and LPG vehicle market analyses provide a clear and deep understanding of important aspects of the market. Readers of the report can become informed about current and future trends of the Indian market and how they will impact market growth during the forecast period.
India CNG and LPG vehicle Market Dynamics:Government initiative for replacement in a diesel engine with CNG and LPG engine in BS-VI vehicles The government has recommended modifying the replacement of diesel engines with CNG and LPG engines in Bharat Stage, BS-VI vehicles weighing less than 3.5 tonnes. As of today, installing CNG and LPG kits into vehicles is permitted under the BS-IV emission standard. The Ministry of Road Transport and Highways has established the type approval standards for upgrading. According to the Ministry, this was created in collaboration with stakeholders. CNG is an environmentally friendly fuel that emits less carbon monoxide, hydrocarbon, particulate matter, and smoke than gasoline and diesel engines, helping to boost the market growth.
Government is highly concerned about using low-emission vehiclesCompared to petroleum-powered cars, CNG vehicles have substantially lower running costs. Alternative fuels like CNG are more cost-effective now, especially for people who drive a lot given the growing demand and limited supply of gasoline, which is causing gas prices to climb. This is due to the fact that, depending on how frequently the user drives their vehicle, the initial cost of CNG or LPG is easily offset by the money saved in a few years. Over the years, the cost of gasoline has climbed significantly, whereas CNG and LPG prices have increased considerably more slowly. This might be a key factor in raising the market share of CNG in the future.
Hikes in Natural gas prices hamper the car seal50-60% increase in gas prices over the past 12 months, CNG car sales bookings were declining 10-15%. According to MMR 29,535 units was the peak happened in March 2022, volumes dropped to 25,480 units in July. CNG-powered vehicle sales have been consistently dropping since April. CNG prices in the national capital have registered a 35 percent increase since December 2021, when they hovered around the Rs 53 mark, and now retail at Rs 71.61 per kilogram, a significant 35 percent increase. Mumbai saw CNG prices go up by Rs 4 per kilogram taking the retail cost to Rs 76 per kilogram. As a result, increasing prices are expected to hamper the sale of CNG cars through the forecast period
Improper drainage damages the cylinderhere are a number of issues with CNG and LPG systems that need to be resolved. Technological advancement has reduced many of the difficulties and restraints in the market. But there are still some significant issues that need to be resolved and same are covered in the report with detail. Inadequate drainage is one such issue that might result in cylinder damage. The shield systems must be able to drain particles and liquids away from the cylinder in accordance with NPFA 52. In other words, holes are bored at predetermined intervals. However, it has been found that many kit service providers don't account for the drainage that is present in systems that are custom-fitted by the company.
India CNG and LPG vehicle Market Segment Analysis:Vehicle type, the Indian CNG and LPG vehicles market is segmented as, per passenger vehicles, light commercial vehicles, and heavy commercial vehicles. The segment was dominated by passenger vehicles and held XX% of CAGR in 2021. As per data available with the industry body Society of Indian Automobile Manufacturers (SIAM) as many as 275,788 passenger vehicles were sold last month, which is an increase of 19% over 231,633 units sold in the corresponding period of the last financial year. The growth in the industry would have been higher at about 26% if we were to include the sales of Tata Motors, which has stopped reporting data on a monthly basis to SIAM ie Society of Indian Automobile Manufacture. Maruti Suzuki India, one of the largest passenger vehicle manufacturers in the country, is also the market leader in the CNG space which sold 142,850 passenger vehicles in the local market. Thanks to introducing 8 models from the current line-up of 14 models in the passenger vehicle range with a CNG option, it accounts for almost 96% market share in the segment. By fuel type, the India CNG and LPG vehicles market is segmented as, CNG and LPG. CNG vehicle are expected to hold larger market share by 2029 and is projected higher CAGR throughout the forecast period. While CNG is a commercially viable alternative fuel for vehicles with internal combustion engines, including cars, motorcycles, and light trucks, in addition to being environment friendly, a CNG-powered vehicle offers significant cost savings over its petrol or diesel competitors. The high cost of gasoline (Rs 109.98 per litter in Mumbai on November 8) and diesel (Rs 94.14 per litter in Mumbai on November 8) in comparison to CNG's cost of Rs 57.54 per kg is the main driver of consumer switch to CNG. Inherently, CNG-powered vehicles have greater fuel economy and much lower operating costs than petrol or diesel-powered vehicles. CNG fuelling, however, takes longer because there are fewer stations. As a result, selecting a route that passes by a CNG station requires additional planning before taking the road. However, automobile customers who use their vehicles frequently realize that cheaper CNG is a good substitute for gasoline and diesel, which has made them happy. Out of the 11 CNG models on sale, a total of 1, 01, 412 CNG cars were sold in India between April to Sept 21. Maruti Suzuki India’s accounted for 81 percent of total CNG units sold with sales of 82,351 units, with its seven models – Alto, S-Presso, Celerio, WagonR, Dzire, Ertiga, and Eeco. The balance is 19%, accounting for 19,061 units of Hyundai Motor India’s account with four models – Grand i10, Santro, Aura, and Xcent. Apart from reducing crude oil imports, the natural gas infrastructure development plan has the potential to create 400,000 new jobs. Three-wheelers and light commercial vehicle drivers, who switch to CNG, could see monthly income increase by Rs 5000-8000 By kit type, the retro fitment Kit segment is expected to be the fastest-growing segment during the forecast period. Retro fitment kits have a faster-growing demand compared to venturi kits due to their offering of higher fuel economy and better control of emissions in vehicles. The central Government is expected to allow the retrofitting of BS-VI petrol cars with CNG kits, which could lower fuel consumption by 40-50%. The road transport ministry published a draft notification establishing emission and other standards for such retrofitting. This is a positive move by the government because CNG as fuel will provide significant relief to the general public from the expensive cost of fuel. Since the government has proposed retrofitting CNG kits in vehicles with engine capacities of up to 1500 CC, it will cover all cars and some SUVs, according to the ministry. This will be allowed for vehicles with GVWs of up to 3.5 tonnes, and type approvals for vehicles retrofitted with CNG kits will be valid for three years. According to industry sources, the retrofitting of CNG in such vehicle kits could cost around Rs 50,000 per vehicle, but the owners will soon repay the cost due to fuel savings. Maruti Suzuki, the country's largest automaker, announced that it has launched a CNG kit for its best-selling little car, the Alto, in the national capital region, priced at Rs 43,545.
India CNG and LPG vehicle Market Regional Insights:The annual CNG car sales in India last year were 2,25,196 units and it is expected to reach 2,41,635 units in 2022. According to expansion of the CGD (City Gas Distribution) network and increasing number of CNG stations is expected to encourage the proliferation of NGVs. According to NRI, CNG vehicle sales continue to grow with PV sales in concentrated in the 5 states of Delhi, Haryana, Utter Pradesh, Gujarat and Maharashtra. With increased deferential TCO (total cost of ownership) benefits compared to other fuel, CNG is gaining prominence among consumer preference post BS VI. Technology is now well established in India with major OMEs concentrating on bringing in range of cost-efficient CNG variants According to the MMR research, the government may assist in reaching 50% sales penetration of natural gas vehicles by 2029, which would be a tremendous accomplishment. By 2029, high penetration of natural gas vehicles might save INR 1 lakh crore (USD 153 billion) in crude oil imports. Economic, performance, safety, and convenience are all important considerations for any buyer looking to purchase an automobile. if the government and industry can collaborate and deliver these benefits for CNG. Customers are drawn to CNG because it has cheaper operational costs in the long run. However, due to the production challenges with CNG vehicles, the initial costs can be significant. Because natural gas must be kept at high pressure, CNG cars require specialized and huge fuel tanks. Because these tanks are more expensive to construct, the selling price of CNG automobiles is slightly higher. The availability of low-pressure, high-density CNG storage devices can offer more cost-effective, small-scale refueling options without sacrificing total range. It may also result in lower fuel production or compression costs at existing commercial fuelling stations. Lower pressure feasibility allows for tank modification and greater placement possibilities in a vehicle. This opens up possibilities for low-cost home refuelling devices. CNG vehicles can be expected to be substantially cheaper in the impending BS-VI regime. This is due to the high cost of an after-treatment device for diesel. As a result, CNG can be positioned as a cost-effective, fuel-efficient, and environmentally friendly alternative to traditional diesel or gasoline fuel. The intervention and support of the government in expanding the CNG network. On the plus side, the government of India (GOI) has implemented a number of substantial policy steps to increase the number of CNG stations. The GOI recently released a natural gas infrastructure development plan that calls for the construction of 10,000 CNG stations over the next ten years. In addition, the petroleum and natural gas regulatory board (PNGRB) announced plans to begin the tenth round of bidding for city gas distribution (CGB) to extend CNG infrastructure to an additional 124 districts. This would imply coverage of 52% of India's land area and 70% of its population, a significant step forward for the country. The market for CNG vehicles in India is developed, with about 30 lakh CNG stations in the country. However, regions with an adequate number of CNG stations have experienced the rising popularity of CNG vehicles. According to the ministry of environment and forest, the government of India, Delhi has already seen a large-scale switch from petrol and diesel to CNG with 50,000 vehicles already being converted. Leading automotive manufacturers in every vehicle category have been taking significant efforts in the development of CNG variants with the advent of BS-III& BS-IV. as the infrastructure for CNG Develops in India, some manufacturers have expressed hope that it could lead to an increase in CNG vehicles. automotive manufacturers should also consider engaging with CNG dealers on the steps required to encourage the growth of this sector. a joint collaborative strategy between all the key and relevant stakeholders of the automotive ecosystem would be extremely beneficial in this regard. The CNG car market in India has tremendous potential for expansion. The good news is that automobile manufacturers and Companies are reacting to the government's increased push for CNG vehicles by working together to develop new models and technology that meet rising customer expectations. The objective of the report is to present a comprehensive analysis of the Indian CNG and LPG vehicle Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.
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India CNG and LPG vehicle Market Report Coverage Details Base Year: 2021 Forecast Period: 2022-2029 Historical Data: 2017 to 2021 Market Size in 2021: 863.22 Thousand Unit. Forecast Period 2022 to 2029 CAGR: 6.82% Market Size in 2029: 1,463,46 Thousand Unit. Segments Covered: by Vehicle Type • Passenger Vehicle • Commercial Vehicle by Fuel Type • CNG • LPG by Kit Type • Venturi • Sequential • retro fitment
India CNG and LPG vehicle Market Key Players• Maruti India Ltd. • Toyota Motors • Hyundai Motors India Ltd. • Tata Motors Ltd. • General Motors • Hindustan Motors Ltd. • FIAT Motors • Ford India • Honda • Mahindra • Skoda • Audi • Nissan • Volkswagen • Mercedes-Benz • Ashok Leyland • Swaraj Mazda • Eicher. • Force Motors • Volvo • Mahindra Navistar Frequently Asked Questions: 1. What is the forecast period considered for the India CNG and LPG vehicle Market report? Ans. The forecast period for the India CNG and LPG vehicle Market is 2021-2029. 2. Which key factors are hindering the growth of the India CNG and LPG vehicle Market? Ans. Hikes in Natural gas prices hamper the car seal 3. What is the compound annual growth rate (CAGR) of the India CNG and LPG vehicle Market for the forecast period? Ans. 6.82 % of CAGR is the annual growth rate for Indian CNG and LPG market 4. What are the key factors driving the growth of the India CNG and LPG vehicle Market? Ans. Government initiative for replacement in a diesel engine with CNG and LPG engine in BS-VI vehicles 5. Which are the worldwide major key players covered for the India CNG and LPG vehicle Market report? Ans. Maruti India Ltd., Toyota Motors, Hyundai Motors India Ltd. Are some of the key players
1. India CNG and LPG vehicle Market: Research Methodology 2. India CNG and LPG vehicle Market: Executive Summary 2.1 Market Overview and Definitions 2.1.1. Introduction to India CNG and LPG vehicle Market 2.2. Summary 2.2.1. Key Findings 2.2.2. Recommendations for Investors 2.2.3. Recommendations for Market Leaders 2.2.4. Recommendations for New Market Entry 3. India CNG and LPG vehicle Market: Competitive Analysis 3.1 MMR Competition Matrix 3.1.1. Market Structure by region 3.1.2. Competitive Benchmarking of Key Players 3.2 Consolidation in the Market 3.2.1 M&A by region 3.3 Key Developments by Companies 3.4 Market Drivers 3.5 Market Restraints 3.6 Market Opportunities 3.7 Market Challenges 3.8 Market Dynamics 3.9 PORTERS Five Forces Analysis 3.10 PESTLE 3.11 Regulatory Landscape by region • North America • Europe • Asia Pacific • The Middle East and Africa • South America 3.12 COVID-19 Impact 4. India CNG and LPG vehicle Market Segmentation 4.1 India CNG and LPG vehicle Market, by Vehicle Type (2021-2029) • Passenger car • Commercial Vehicle 4.2 India CNG and LPG vehicle Market, by Fuel Type (2021-2029) • CNG • LPG 4.3 India CNG and LPG vehicle Market, by Kit Type (2021-2029) • Venturi • Sequential • retro fitment 5. Company Profile: Key players 5.1.1. Hyundai Motors India Ltd. 126.96.36.199 Company Overview 10.1.2. Financial Overview 10.1.3. Capacity Portfolio 10.1.4. Business Strategy 10.1.5. Recent Developments 5.1.1. Tata Motors Ltd. 5.2. General Motors 5.3. Hindustan Motors Ltd. 5.4. FIAT Motors 5.5. Ford India 5.6. Honda 5.7. Mahindra 5.8. Skoda 5.9. Audi 5.10. 5.10.Nissan 5.11. Volkswagen 5.12. 5.12.Mercedes-Benz 5.13. Ashok Leyland 5.14. Swaraj Mazda 5.15. Eicher. 5.16. Force Motors 5.17. Volvo 5.18. Mahindra Navista