Even as demand for CNG(compressed natural gas) E in India, the CNG retrofitting business is taking a hit. Having issued a draft proposal vide a notification on January 27, 2022 to allow fitment of CNG and LPG kits in BS VI vehicles which are less than 3.5 tonnes in gross vehicle weight (GVW), the final approval and go-ahead from the Ministry of Road Transportation and Highways (MORTH) is still pending. This is adversely impacting the aftermarket CNG retrofit business.
On April 1, 2020, the stringent BS VI emission norms came into force but more than two years later after the technological upgrade, there is still no approval for vehicles complying with these emission regulations to be fitted with the greener CNG fuel option in the aftermarket.
OEMs benefit, aftermarket holds its breath
At present, BS VI cars see CNG installation only at the factory level, of which OEMs like Maruti Suzuki India, Hyundai Motor India and more recently Tata Motors, are the only players offering petrol-CNG bi-fuel options in their select models. With demand for this more economical and efficient fuel option only growing, attributed to the sharp rise in prices of petrol and diesel in the past couple of years, it is only OEMs which have made all the gains, leaving the small-scale aftermarket operators scrambling to remain profitable.
In FY2022, CNG-powered sales clocked near-55 percent YoY growth with 265,383 units, which comprises 8.64 percent of total PV sales of 3,069,499 units vs 6.30 percent in FY2021.
With an impressive 7 cars on offer with a CNG option last fiscal, India's largest carmaker - Maruti Suzuki India - commanded an 81 percent market share. It has now intensified its CNG assault with 10 cars from its portfolio being offered with the factory-fitted bi-fuel option. In fact, of its existing 387,000 units order backlog, CNG variants account for 126,000 units or 33 percent.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Spain's Fersa Group invests in India-based Delux Bearings
Besides theRs100 croreinvestment, the Indian company gets access toadvanced technologies and bearings with arange of applications that willhelpinits global growth strategy, writes Manobhava Baruah.
Tata Autocomp to open compact dual-clutch transmission plant
Amidthe country’s growing need for personal mobility with easy manoeuvrability, comes the demand for vehicles with automatic transmission. Tata AutoCompisready tomovein writes Shruti Mishra.
Pankaj Munjal-backed Hero Motors raises equity from GEF Cap
The company willinvest Rs1,500 crore over thenextthree years andit expects 60 percent ofits turnover to come fromelectric vehicle parts. Itaims to becomea Global EV Solutions Company from India
New age thermoplastics for next-generation EV batteries
Saudi-based global materials major SABIChas developed cutting edgein fire-resistant polymers and flame-retardant materials that comply with various EV battery safety standards across the world.
Switch Mobility to meet growing e-bus demand with fresh capex
Oncourse for abillion-dollar business, the company is exploringa possibility of operating satellite factories across the country to serve different geographies, write ShahkarAbidi and Ketan Thakkar.
Kia India to invest Rs 2,000 crore in EVS, to introduce new e-RV in 2025
New investmentto drive R&D, infrastructure development and manufacturing capabilities. The company willlocally produce EVsin India with possibility of exports as well, writes Mayank Dhingra.
"The government has given enough time for indigenisation but the industry has not taken it seriously"
Amitabh Saran, Founder and CEO, Altigreen, shares his views on problems inthe EV industry and battery localisation solutions with Amit Vijay M.
TATA MOTORS SEES ONE INTWO CARS SOLDAS EVS BY 2030
The company aims to offer wider choices withnew EVs that may straddle a pricebracket of Rs20to 40lakhinthe coming years, writes Ketan Thakkar.
MG Motor India in expansion drive, to invest $100 million
The investment willbe usedtoramp up existing production capacity from1.2to1.4-15lakh units per annum atthe automaker's Halol plantin Gujarat, writes Ketan Thakkar.
"Technology and its multiplier effect are driving business transformations and customer experiences"
Technical Centre India is one of Continental’s largest research and development centres in the world, andasa Centre of Competence’ it also develops customised products for the BRIC countries.
