Tata Motors has seen a notable increase in CNG sales for its intermediate, LCV and SCV vehicle portfolios in fiscal 2022 as compared to fiscal 2021, says executive director, Tata Motors, Girish Wagh.
In an e-mail interview to Autocar Professional, Wagh said the trends suggest a shift in CV buying as far as fuel mix preference goes from diesel to CNG-powered vehicle. He attributed this to a trio of factors. Firstly, the increasing diesel prices have increased the total cost of operations for fleet owners thereby impacting overall profitability compared to CNG-powered vehicles. Secondly, the initial price difference between similar diesel-powered and CNG-powered vehicles has reduced after the transition to BS6 emission norms. Lastly, CNG is now more widely available in metros, tier 2 and tier 3 cities thus taking away the range anxiety to a large extent and boosting demand. Besides the savings on operational costs, CNG vehicles have also resulted cost benefits, with exemptions on green tax/cess in numerous states and cities across the country, Wagh emphasised. With a strong portfolio of CNG vehicles in the SCV, I&LCV and the bus range, the company has been able to leverage this.
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